Life is Strange developer Don't Nod look primed for layoffs, as the studio announces a "transformation intitiative"

The developer "believes it is necessary to adapt its operating model"

It is unfortunately that time of day again (because this truly does seem to be a daily occurrence at this point). Back in June, things weren't looking so hot for Life is Strange studio Don't Nod, as it appeared that they'd be out of cash come this November. Now, it looks like the studio is preparing for layoffs.

As spotted (and translated) over on ResetEra, Don't Nod shared a press release where they explained that they were embarking on a "transformation initiative to maintain [their] competitiveness." The release goes on to explain, "Against a backdrop of profound changes in the economic conditions of the video game industry and its financing, coupled with a deterioration in the Group's key economic indicators, the Company believes it is necessary to adapt its operating model.

In this context, management has convened the Company's employee representative bodies for a meeting scheduled for Thursday, September 3, 2026. This is the first meeting of the CSE's information and consultation procedure prior to the potential implementation of a job protection plan. At the same time, management has begun negotiations with the representative labour union within the Company."

This obviously isn't outright confirmation that layoffs are going to take place, but the vague description of a transformation initiative, alongside mentions of a "job protection plan" and labour union negotiations certainly doesn't instill a particular sense of confidence. Unfortunately, none of this is especially surprising given the earlier reporting of running out of cash.

On top of that, despite some critical acclaim here and there, recent releases don't appear to have done well enough to properly sustain the studio. In the past three years Don't Nod have managed to put out five games, including the likes of Jusant, Lost Records: Bloom & Rage, and earlier this year, Aphelion. The lattermost received fairly average reviews, while the other two were generally appraised quite positively, but positivity doesn't pay the bills. Solidarity with any devs that may be affected by these changes.