Paramount Skydance has begun layoffs in its games division following its Warner Bros. acquisition. Employee accounts describe cuts at Paramount Games and Skydance Interactive.
Skydance has not disclosed how many people have lost their jobs or issued a statement confirming the cuts.
Developers describe team cuts
Associate design director David Ballard wrote on LinkedIn that he had been laid off. He said several coworkers were also affected and encouraged employers to consider former Skydance Interactive staff for open positions.
Rebecca Vessal, a senior gameplay and game AI programmer at Skydance Interactive, said most of her game team had lost their jobs. Vessal was not affected, but asked other developers to help her former colleagues find work.
Chairman and CEO David Ellison and co-CEO Ynon Kreiz had warned employees that combining the companies would involve layoffs. The company is targeting more than $6 billion in annual cost savings within three years, without specifying how many positions it expects to eliminate.
Hogwarts Legacy spellcasting
Warner Bros. had already narrowed its priorities
Warner Bros. Games underwent substantial cuts in February 2025, closing Monolith Productions, Player First Games, and Warner Bros. Games San Diego. Monolith's Wonder Woman game was canceled as part of that restructuring.
The publisher's stated focus shifted toward Harry Potter, Mortal Kombat, DC, and Game of Thrones. Those earlier closures are separate from the newly described losses at Paramount Games and Skydance Interactive, and should not be treated as evidence of fresh cuts at Avalanche Software.
Two other projects remain in development: Marvel 1943: Rise of Hydra and an untitled Star Wars game. Both are led by Amy Hennig, whose previous work includes Uncharted and Legacy of Kain.
