Skydance implements undisclosed games layoffs after $111 billion merger

Skydance said on Nov. 10, 2026 that it implemented an undisclosed number of layoffs in its games division after the $111 billion merger between Paramount and Warner Bros. Discovery, citing reorganization and scaled-down projects. The announcement followed a review of where the company invests effort and a decision to scale down some projects, which affected roles.

The company did not disclose how many employees were affected. Kotaku and Insider Gaming estimated approximately 30 positions may be cut, with Insider Gaming reporting that at least 30 people lost their jobs and the real figure believed to be higher. Engineer David Vera identified about 25 affected colleagues, a list TheWrap said covers producers, writers, engineers, audio and level designers, and artists; his count is not established as the final companywide total. type

David Ballard announced on LinkedIn on Nov. 10, 2026 that his chapter with Skydance and Paramount ended in a layoff after almost 4.5 years, and he expressed gratitude for a shipped title, awards, two promotions, his team and collaboration. Senior gameplay engineer Rebecca Vessal said she kept her job.

Insider Gaming reported that none of the affected staff identified so far appear to come from the former Warner Bros. Games studios. Softonic reported that employee reports indicated the first round of cuts hit Skydance Interactive and Paramount Games harder than the former Warner Bros. studios, with at least 30 cuts so far and a total that could be higher while the company had not commented.

On Oct. 6, 2026, Skydance merged Paramount Games Studio with Warner Bros. Games developers including Avalanche Software, the maker of Hogwarts Legacy, NetherRealm Studios, Rocksteady Studios and TT Games, plus teams in Montreal and Boston, under Tony Driscoll, creating Skydance Games as a single games and experiences unit. Inven Global reported that the combined games and experiences unit oversees properties from Star Trek and SpongeBob SquarePants to Harry Potter, Mortal Kombat and the DC Universe.

Paramount Games Studio began in the summer and EVP and head of games Dan Brigg leads it; the studio combines Paramount intellectual property with Skydance Interactive and Skydance New Media. Rock Paper Shotgun reported that the studio includes Marvel 1943: Rise of Hydra developers and Teenage Mutant Ninja Turtles: The Last Ronin publishers, and that Skydance can base games on intellectual property such as Avatar: The Last Airbender, Game of Thrones, Star Trek, the DC Universe and Harry Potter.

Softonic reported that development is still moving ahead on Marvel 1943: Rise of Hydra and Amy Hennig’s untitled Star Wars game. Skydance has not named the projects it is scaling down, specified which development areas face reductions, announced cancellations or provided a revised release schedule.

Skydance confirmed the layoffs in a statement to Variety on Nov. 9, 2026, after staff from Paramount Games Studio posted over the weekend that they had lost their jobs. The company described the reorganization and operational shifts across a few areas of the business as efforts to position Skydance Games for long-term growth and success. The spokesperson tied the restructuring to the company’s investment review after the merger.

The layoffs are not a reflection of the talent, dedication or creativity of those affected, a Skydance spokesperson said, pledging transparency, care and respect for employees leaving the company and thanking departing employees for their contributions. Chief Executive David Ellison had warned that combining two companies of this size and complexity would require difficult decisions.

TheWrap reported that the wider company is pursuing at least $6 billion in merger-related cost savings across real estate, marketing, technology and procurement, while carrying over $80 billion in debt, and has offered voluntary buyouts to some employees. Softonic reported that Skydance had put a new five-day return-to-office rule in place, describing it with voluntary buyouts and Ellison’s warning about difficult decisions as warning signs before the cuts.

Rock Paper Shotgun placed Skydance among Microsoft, Ubisoft and EA as corporations that have mandated layoffs. Inven Global reported the games cuts on the same day that James Gunn and Peter Safran stepped down at DC Studios, framing the departures as evidence that the new owners are reshaping the business.