Iron Galaxy Studios Announces Layoffs, Potentially Affecting 90 Employees

Even though Tony Hawk’s Pro Skater 3 + 4 had a significant launch last year, Iron Galaxy Studios recently announced it is reducing its workforce with a new round of layoffs.

Iron Galaxy Studios announced today that they are downsizing, resulting in job losses for some of their team members. The company explained this change is necessary to adapt to the current challenges in the video game industry, and they are saddened to say goodbye to those affected. They stated they need to evolve to meet the changing landscape.

Although the specific number isn’t confirmed, a source told Kotaku that as many as 90 employees might lose their jobs.

Iron Galaxy has gone through many changes as a company, evolving in both its focus and size over time. In 2020, they hoped things would return to how they were before, but now they’re realizing that’s unlikely. This year, they’re shifting their approach to accept the current market as the new normal.

The way people play games is changing, and publishers are looking for different things when they fund new projects. This shift is affecting everyone we work with. As Iron Galaxy moves forward, we’re facing tough choices about the future of the company. We simply can’t afford to maintain our current team size, even after the reductions we made last year.

Last year, the studio was forced to let go of 66 people from its development and support teams. They described it as a final step taken when all other options had been exhausted.

Honestly, it’s really tough when we have to say goodbye to team members. We truly value everyone who works here and want them to have a great experience. When it’s time for them to move on, we want to support them in finding their next opportunity – we’re happy to make introductions and offer referrals to anyone who’s hiring. If you’re looking for talented people, please keep an eye out – these folks are amazing!

Iron Galaxy has experienced both successes and setbacks over the years. While they were once criticized for the PC version of Batman: Arkham Knight, they gained recognition for their work on Killer Instinct. They continued to support that game in 2023 by adding 4K resolution and releasing a free version to celebrate its 10th anniversary.

The studio then collaborated with well-known developers like Gearbox, Blizzard, and Bethesda to bring several popular games to the Nintendo Switch. In 2022, they tried their own game, Rumbleverse, a free-to-play wrestling battle royale, but it didn’t gain enough players and was discontinued in 2023. Interestingly, also in 2023, they released the PC version of The Last of Us Part 1, which received a lot of criticism, bringing their journey almost back to where it started.

As a big fan, I was really glad to see The Last of Us Part 2 Remastered finally come to PC in 2024, and it seemed to fix a lot of the problems people were having. Sadly, even that wasn’t enough to prevent the layoffs at the studio last year, which was really disappointing.

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2026-04-19 21:11