Don't Nod, the studio behind Life is Strange and Lost Records: Bloom and Rage, has entered a safeguard procedure to avoid insolvency, the French game workers union STJV announced. The studio cannot pay its debts.
CEO Oskar Guilbert told staff that a safeguarding process represents "an act of anticipation". STJV notes the company lacks funds to complete its existing redundancy plan for laid-off workers.
Don't Nod will cancel its final in-development project, referred to as P14. The studio plans massive layoffs targeting nearly all non-managerial roles. STJV listed specific cuts: 6 of 6 animators, 3 of 3 character artists, 3 of 3 concept artists, 8 of 10 environmental artists, 2 of 3 sound designers, 4 of 8 game designers, 3 of 5 level designers, 6 of 6 associate producers, 18 of 22 programmers, 3 of 5 QA testers, 2 of 3 devops, and 3 of 4 HR staff.
Management plans to shift to outsourcing and contractors to maintain operations despite the staff cuts. STJV criticized the strategy as unrealistic, stating the costs of transitioning external work and losing internal experience "seem to have been ignored in favour of short-term penny-pinching with unclear upsides."
The CSE consultation ends November 3rd. The regional agency for employment and industry has 21 days to decide on the plan. If accepted, firing letters could arrive November 25th.