A rather strong (and sad) rumor about Virtuos has surfaced, and, if true, it seems unfathomable.

According to French journalist Gauthier Andres, Virtuos—a studio that worked with Konami on the Metal Gear Solid 3: Snake Eater remake and Metal Gear Solid Delta: Snake Eater, and recently assisted Bethesda on The Elder Scrolls IV: Oblivion Remastered—is reportedly facing mass layoffs, with 300 developers expected to lose their jobs. Andres claims that internal sources report infighting at Virtuos, as management appears to be losing the trust of the staff. Sources say the team is overwhelmed trying to complete Oblivion Remastered, while Virtuos pushes for a level of quality that far exceeds the project’s budget, aiming to stand out in a crowded support/co-development market.

Andres reports that tensions between staff and management worsened when Virtuos was denied royalties from Oblivion Remastered’s success, despite it being one of the year’s best-selling games. In February, management reportedly announced a freeze on raises and a reduction in bonuses, fueling further unrest. Now, with layoffs looming, developers at Virtuos Lyon have gone on strike, protesting both the layoffs and their impact on the company’s productivity and operational capacity.

Morale reportedly suffered even more after Virtuos executives started pushing generative AI tools on employees, who are now required to participate in basic training on their use. According to Andres, of the 300 layoffs, 200 will impact the China-based team, while the remaining 100 cuts will hit developers in the French and US studios.

Virtuos has yet to release an official statement acknowledging these layoffs. If the reports are true, it’s a sad development for what has been a very successful team.

Source: WCCFTech, Bsky