Lost Boys Interactive confirmed there have been major layoffs as of last Friday due to more restructuring from parent company Embracer.
2024 continues the tales of the last few years in the video game industry: layoffs. Unfortunately, the Borderlands 3 and Tiny Tina’s Wonderlands studio Lost Boys Interactive has just saw an unknown quantity of layoffs. The company’s layoffs were linked to a post on LinkedIn last Friday by former producer Jared Pace, who shared the news that a “significant portion” of employees had been let go. While the number of layoffs was not clear, the Gearbox-owned company was described as having more than 400 employees – all of whom fall under the Embracer Group studio umbrella.
“It seems a sizable portion of Lost Boys Interactive was laid off today, including myself,” Pace wrote. “Still trying to understand the scope of it all, but sadly – this is a song and dance we’re all familiar with.” Pace also spoke with Aftermath about the layoffs “affect[ing] all disciplines at all levels.” Gearbox and Embracer have yet to confirm the number of layoffs or comment on the matter.
Lost Boys Interactive was founded in 2017 and has contributed to games like Tiny Tina’s Wonderlands, Diablo IV, and The Quiet Man. In 2022, it was acquired by Borderlands creator Gearbox, at which point it boasted a headcount of over 220. Gearbox nearly doubled Lost Boys Interactive’s size prior to the layoffs. However, in 2022, Embracer attempted to close a $2 billion deal with a Saudi investment group, but the deal fell through in 2023. Ever since, its many properties have been hit by layoffs on a near-monthly basis.
Some of the laid-off Lost Boys Interactive employees said the company was a great place to work and were sad to see the results of the layoffs. “It was an absolutely fantastic time full of challenges and wonderful friendships,” wrote Spicer McElroy, former art director at Lost Boys Interactive. “If you see anyone from Lost Boys looking for work, hire them immediately. They are the most amazing group of artists I have ever worked with.
Exclusively from last week, Unity has laid off 1,800 people, Twitch has laid off 500 people, Discord has laid off 170 people, and now Lost Boys Interactive has laid off potentially dozens of workers. That brings the total number up to over 2,500. The new year is looking a little grim as more companies continue to restructure.
