Cryptic Studios Announces Significant Layoffs
Image Credit: Cryptic Studios
Cryptic Studios, the developer behind popular MMORPGs like Neverwinter and Star Trek Online, is facing a significant round of layoffs scheduled for the end of October 2024 in a year which has already set a record-high for video game industry layoffs. This news follows previous layoffs in late 2023, which were part of parent company Embracer Group's restructuring efforts. Although the exact number of employees affected has not been officially disclosed, multiple sources indicate that nearly a quarter of all staff and many experienced team members, including senior artists and community managers, will be let go.
The layoffs have hit various departments within the studio, with key staff like senior artist Mauricio Tejerina and community manager Mike Fatum confirming their impending departure. Other employees, such as character artist Amelia March and environment artist Gianna Rockwell, also shared the news of their layoffs on LinkedIn. These cuts are part of the continued fallout from Embracer Group’s financial blunders, particularly after the collapse of a $2 billion investment deal in 2023.
The Embracer Group, which acquired Cryptic Studios as part of its purchase of Perfect World Entertainment in 2022, has been undergoing major changes in an attempt to reduce costs. As a result, many of its subsidiary studios, including Cryptic, have experienced job cuts. This latest wave of layoffs is expected to take effect by October 31, leaving many talented developers looking for new opportunities as the studio transitions some of its projects to other development teams under the Embracer umbrella.
While Cryptic’s core games like Star Trek Online and Neverwinter will continue to be supported, there are concerns about the future of the studio and the impact these layoffs will have on the overall quality and updates of these MMOs. The ongoing restructuring leaves many employees and fans of the studio's games worried about what's next for Cryptic and its long-standing titles.
