Don't Nod has entered protective proceedings as it seeks to restructure and avoid insolvency, according to a report by French video game workers' union Le Syndicat des Travailleureuses du Jeu Vidéo. The studio, known for Life is Strange, Remember Me and Vampyr, is cutting staff while trying to continue work on an unannounced game codenamed P14.According to the union, management intends to finish P14 by relying more heavily on outsourcing, without scaling back the project. The report says around 100 people are working on the game and questions whether the remaining team can manage that shift while taking on the work of those who have left.The union says all character and concept artists have been laid off, along with most staff working in environments, sound, game and level design, programming, production, testing and development operations. The report attributes the information to a communication from CEO Oskar Guilbert and the work of employee representatives.There are also concerns about the terms offered to affected workers. According to the union, the company is not in a position to offer severance packages or a voluntary redundancy plan, leaving it limited to the legal minimum. The report also cites concerns about employee health: staff representatives have reportedly recorded six workplace accidents in 2026 and launched an investigation into a situation of serious and imminent danger.Don't Nod's board had already approved a restructuring that could lead to up to 90 layoffs. Months earlier, the company had said it was close to running out of funds. Talks with employee representatives are expected to end on November 3, according to the union's report. Don't Nod has yet to confirm how it plans to reorganize production of P14 after the cuts.With information from Eurogamer.
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