Eidos Montreal lays off more employees, internal projects reportedly cancelled as the studio shifts focus to support work
It appears that Embracer-owned studio Eidos Montreal has suffered another round of layoffs, as numerous now-former employees have said on LinkedIn that they were put out of work last week.
As first reported by Insider Gaming, the layoffs impacted people in a wide range of roles—at least a dozen in total, according to a message posted by presentation director Timothé Lapetite. "Eidos-Montréal got served with one of those Mondays," he wrote in a message posted last week. "We had to part ways with some incredible talent due to *gestures at everything*."
Sources also told the site that most projects in the studio have also been cancelled, and that it is now focused on co-developing projects including Grounded 2, led by Obsidian, and the Fable reboot being headed up by Playground Games. Neither Eidos nor parent company Embracer Group (yes, it's an Embracer studio) have confirmed the layoffs or responded to requests for comment.
This would be the second round of layoffs at Eidos Montreal in 2025, following a cut of roughly 75 employees in March. The studio previously laid off 97 workers, and cancelled an unannounced Deus Ex game it had in development in early 2024.
The layoffs seemingly reflect ongoing troubles at Embracer, which fell into a deep hole in 2023 with the collapse of a $2 billion financing deal that resulted in multiple studio closures and nearly 1,400 layoffs as of February 2024, a number that has grown considerably since.
Embracer announced the end of its subsequent restructuring in March 2024 following the sale of Gearbox to Take-Two Interactive (for far less than half of what it paid for the studio in 2021, it bears noting) yet layoffs and closures continued almost completely unabated. In May of this year, Embracer announced another round of restructuring; Crystal Dynamics, Eidos Montreal's partner studio in Embracer's "operative groups" structure, has undergone three rounds of layoffs itself in 2025.