Eidos Montreal, known for games like Marvel’s Guardians of the Galaxy and the Deus Ex series, has had another round of layoffs. This continues a difficult period for the studio, and marks the third year in a row that the workforce has been reduced since being acquired by Embracer Group in 2022.
The studio has recently faced more layoffs after a challenging period that began with cuts in 2025, affecting as many as 75 employees at Eidos Montreal. Like the previous layoffs, these changes are being attributed to evolving project requirements. Eidos Montreal was purchased by Embracer Group in 2022 as part of a larger acquisition of several studios from Square Enix. Since then, Embracer has been reorganizing, and these repeated rounds of layoffs over three years indicate the restructuring is still affecting the studio.
Eidos Montreal Confirms Hundreds of Employees Were Let Go
On March 30, 2026, Eidos Montreal announced layoffs through a LinkedIn post. The studio stated that 124 employees would be affected due to changing project requirements, and they needed to adjust their team size to match current development needs. Eidos Montreal clarified that these layoffs, similar to those in 2025, weren’t related to employee performance but were driven by shifting priorities. This announcement is part of a larger trend of layoffs in the gaming industry, including a recent reduction of 1,000 positions at Epic Games.
The recent layoffs also included the departure of David Anfossi, who had led the studio for 13 years. During his time there, he oversaw major titles like Shadow of the Tomb Raider (in collaboration with Crystal Dynamics), Deus Ex, Marvel’s Guardians of the Galaxy, and recent projects for Xbox. Anfossi had been with Eidos Montreal for almost 20 years. These leadership changes, happening alongside the company’s restructuring, often suggest a new direction. The company stated a plan is in place to manage the transition, but a replacement for Anfossi hasn’t been named yet.
Eidos Montreal has faced difficulties recently, potentially due to shifts in its project plans. According to a recent Reddit post by Bloomberg’s Jason Schrier, the studio has canceled a major, unannounced game that had been in development since 2019, alongside recent layoffs. This follows earlier layoffs in 2024, which included the cancellation of the next Deus Ex game and the termination of 97 positions. Eidos Montreal has been focusing on supporting Xbox games like Grounded 2 and the upcoming Fable.
The recent layoffs at Eidos Montreal are part of a larger trend in the video game industry, with studios big and small repeatedly cutting jobs over the last few years. Even Eidos Montreal’s departing executive, Anfossi, suggested the industry is currently undergoing major changes. Just this year, 2026, we’ve already seen over a dozen game studios close down, leading to further job losses.
Rising development costs, changing player demands, a slowdown after the surge in spending during the pandemic, and major company reorganizations have created a difficult and unpredictable time for game developers. The problems at Eidos Montreal aren’t unique; many studios are facing similar challenges. Even successful companies like Epic Games, with popular games like Fortnite, are feeling the strain.
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2026-03-31 20:04