Don’t Nod’s games have fallen well short of expectations in recent years. The French studio is now preparing another major restructuring that could eliminate as many as 90 jobs in France, while the company’s ability to continue operating may also depend on securing outside financing.

The video game industry shows little mercy, even to one of Europe’s most recognizable studios. Despite giving us games such as Life is Strange, Vampyr and Jusant, the past few years have become increasingly worrying for Don’t Nod, with several projects barely generating profits and other ideas simply failing to connect with a large enough audience. Just three months after it emerged that the company’s existing financial position did not provide sufficient certainty for operations beyond early 2027, Don’t Nod has unveiled a restructuring plan that could result in the elimination of up to 90 positions in France. The move makes it clear that the situation has still not been resolved and that the studio continues to need additional capital.

The company had already disclosed serious financial difficulties at the beginning of the summer after Tencent declined to provide further funding. Don’t Nod closed the first half of 2026 with €6.1 million in revenue, down 14% compared with the same period a year earlier, while operating EBITDA showed a €4.3 million loss, compared with a €2 million loss in the first half of 2025. Revenue from game sales fell to €3.5 million, while development revenue increased to €2.6 million. That growth was primarily driven by work being carried out by the Montreal team on a narrative game based on a major Netflix intellectual property.

Don’t Nod Will Focus Its French Operations, but Even That Cannot Guarantee Its Future

Faced with this situation, Don’t Nod has already introduced several cost-cutting measures, although the company itself acknowledges that these steps are not enough on their own to guarantee long-term viability. Its proposed organizational transformation would concentrate the French operation around a single production line and, under the current plan, could result in the elimination of as many as 90 positions. According to the company’s official statement, the new structure is intended to enable more efficient allocation of resources, clarify responsibilities and concentrate expertise more heavily on priority projects.

Don’t Nod Chairman and CEO Oskar Guilbert acknowledged that the proposed measures would be “difficult” and that the company understands the potential impact on affected employees. He nevertheless argues that adapting the studio’s operating model has become unavoidable in the current market. “In a market where funding is more selective and revenues more uncertain, we must adapt our model with clarity and responsibility,” Guilbert said. He added that the objective is to ensure the continuity of the studio’s activities, although Don’t Nod’s own statement makes clear that its ability to continue operating beyond January 31, 2027 still depends in part on obtaining external financing.

The document also warns that the restructuring could result in further workforce reductions over the coming months. It is not yet known whether those additional cuts will ultimately take place, nor is the status of negotiations with potential outside investors clear. What is known is that, beyond the narrative game being developed in collaboration with Netflix, Don’t Nod currently has no other announced projects scheduled for 2027 or later. The studio’s future therefore depends not only on reducing costs, but also on whether it can secure new sources of financing in time.

Source: 3DJuegos