Following an announcement from last week that DON’T NOD would be undergoing restructuring, the company has now confirmed in a new financial update that it might have to lay off up to 90 members of its staff. The company has said that its board of directors has approved a new business model that would require this restructuring, and went on to say that there is still “material uncertainty” about its survival beyond January 2027.
“Despite the measures already undertaken as part of its performance plan and the cost-cutting actions implemented, these efforts alone are not sufficient to restore Don’t Nod’s competitiveness on a sustainable basis,” said the company. “Against this backdrop, the profound changes in the economic conditions of the video game industry and its financing, combined with the deterioration of DON’T NOD’s key financial indicators, are significantly affecting its competitiveness. The Company therefore believes it is necessary to adapt its business model.”
The restructuring and new business model will seemingly allow DON’T NOD to continue making games under a single production line. This, says the company, will give the ability to have a “continuous pipeline” of new releases that will help support its long-term growth.
“With this in mind, DON’T NOD is refocusing its operations in France around a single production line, bringing together the expertise required to launch new projects before the completion of current productions. This organizational initiative is intended to maintain a continuous pipeline of projects and support the Company’s long-term growth.
“It aims to strengthen the Group’s operational efficiency by enabling a more efficient allocation of resources, clarifying responsibilities, and focusing expertise more intensely on priority projects. In this context, the transformation project currently under consideration could lead to a workforce adjustment in France that may involve the reduction of up to 90 positions.”
In the meantime, DON’T NOD is also trying to secure new funding to help the studio survive. Noting that it had “consolidated gross cash” amounting to €8.0 million by the end of July 2026, the company wants to secure external financing that would cover its business operations and project development needs. “This represents material uncertainty regarding the company’s ability to continue as a going concern beyond January 31, 2027.”
CEO of the studio, Oskar Guilbert, said in a comment that the financial performance of DON’T NOD in the first half of 2026 “confirms the major challenges facing our industry.” He spoke about financing having become more selective and revenue being uncertain.
“The measures being considered today are difficult – we fully appreciate what they may mean for the employees affected and are ensuring that the necessary support measures are put in place. This plan is, however, essential to ensuring the Company’s continued operations.”
DON’T NOD had confirmed earlier this month that it would begin meeting representative bodies of its employees so that it can implement a “job protection plan” to ensure that, even if the layoffs do hit, many employees will continue to be protected. The company’s most recent game was Aphelion, which came out on PC, PS5, and Xbox Series X/S back in May. For more details, read our review.
