Skydance has laid off game developers just over a month after completing its $110 billion (approximately £81.8 billion) takeover of Warner Bros. Discovery on 6 October 2026.
Insider Gaming reports at least 30 job losses, while the company has confirmed plans to scale down some gaming projects.
The cuts appear to involve staff from Skydance Interactive and Paramount Games. They coincide with a wider cost-saving programme, although Skydance has not said the gaming layoffs are part of that effort.
Skydance Confirms Gaming Layoffs
Skydance confirmed the reductions on 9 November after employees discussed the cuts publicly. In a statement to Variety, a spokesperson said the company had reviewed its investments and decided to reduce work on certain projects.
The spokesperson described a reorganisation aimed at supporting long-term growth. Skydance stressed that the decision did not reflect the talent, dedication or creativity of affected employees.
The company did not disclose how many positions were eliminated or identify the projects being scaled back. Insider Gaming reported at least 30 redundancies, while TheWrap identified at least 25 affected workers.
Neither figure is an official final count. Skydance has not announced the cancellation of any particular game.
Developers Describe Team Losses
Senior gameplay and game AI programmer Rebecca Vessal said most of her team had been laid off, although she remained employed. Her account was among several shared publicly after the cuts.
Lead engineer David Vera, who also retained his position, identified 25 affected colleagues. They worked across engineering, design, production, writing, audio and art roles.
Associate design director David Ballard said he had lost his job. He praised former colleagues and urged prospective employers to consider hiring them.
Insider Gaming reported that none of the publicly identified affected employees appeared to come from former Warner Bros. Games studios. That does not establish whether those studios will face future reductions.
Why Are Jobs Being Cut After the Takeover?
The acquisition brought Paramount and Warner Bros. Discovery together under the Skydance name.
The announced $110 billion (approximately £81.8 billion) enterprise valuation included debt, while the equity valuation was approximately $81 billion (approximately £60.23 billion).
On 9 November, Reuters reported that Skydance aimed to deliver at least $6 billion (approximately £4.47 billion) in annualised savings within three years. The company expects roughly 30% of those savings during the first year.
Reuters also reported approximately $87 billion (approximately £64.69 billion) in gross debt following the acquisition. The savings plan covers corporate overhead, property, marketing and technology, but Skydance has not directly attributed the gaming redundancies to that programme.
The company has not identified the specific reasons for scaling down the affected projects. Its statement points to revised investment priorities rather than particular development problems.
Are Hogwarts Legacy and Mortal Kombat Affected?
The combined games operation includes Avalanche Software, developer of Hogwarts Legacy, NetherRealm Studios, known for Mortal Kombat, and Rocksteady Studios, behind the Batman: Arkham games.
Tony Driscoll heads the company's combined games and experiences division. It brings together studios and franchises previously associated with Paramount and Warner Bros.
There is no confirmed evidence that these former Warner Bros. studios were affected in the reported round. Skydance has not identified any major franchise facing cancellation or delay.
For now, the confirmed changes are staff reductions and scaled-back work on unspecified projects. The consequences for future releases remain unclear.
