Sadly, we can’t go more than a few weeks without hearing about another round of layoffs in the gaming industry. This time, it’s Virtuos, the development outsourcing firm behind titles like Oblivion Remastered and the upcoming Metal Gear Solid Delta: Snake Eater. The company is going through a major restructuring effort that has resulted in over 300 employees being laid off across multiple regions. That’s roughly 7% of its global workforce. And while Oblivion Remastered launched successfully, it clearly wasn’t enough to protect the studio from the chopping block.
According to industry reporter Gauthier “Gautoz” Andres of French publication Origami, the layoffs are affecting teams across Asia, Europe, and North America. About two-thirds of those impacted — roughly 200 — were based in China. But several French studios, including those that contributed to Oblivion Remastered, were hit as well.
In response, developers at Virtuos Lyon have gone on strike, protesting the layoffs and leadership consolidation across the company’s French offices.
Sources say that most of the frustration comes from how Oblivion Remastered was handled internally. Developers reportedly “over-delivered” on the project, putting in extra time and effort to ensure quality, but weren’t compensated with profit-sharing or royalties. That level of burnout, without a return, likely added to the studio’s financial stress.
To make things worse, back in early 2025, Virtuos had already frozen raises and slashed bonuses, which were a massive red flag that, in hindsight, were obvious signs of what was coming.
On top of everything else, the company has now mandated AI training for all remaining staff. That’s a big “what the fuck” moment if I’ve ever seen one. Over the next year, everyone’s expected to go through generative AI upskilling. It’s a clear signal that Virtuos is shifting toward automation, likely to reduce labor costs and speed up production cycles.
Unfortunately, this is becoming the norm. Studios are tightening budgets, embracing AI, and forcing the same developers who keep the industry afloat to bear the consequences. The gap between effort and reward is widening. And while investors might be happy, the people who make the games are constantly the ones who are getting screwed.
In layman’s terms? This sucks. And unless the industry gets its priorities straight, this cycle of layoffs and burnout isn’t going anywhere.
