Skydance Games confirms layoffs after Warner Bros. merger closed

Skydance Games confirmed on Nov. 9, 2026 that it is conducting layoffs in its video game division after the Paramount and Warner Bros. merger closed last month.

The company has not disclosed how many employees were impacted. A spokesperson told Variety the company is implementing reorganization and operational shifts across a few areas of its business and has decided to scale down some of its projects. The spokesperson said impacted roles are not a reflection of talent, dedication or creativity, and that the company is committed to transparency, care and respect for those leaving.

Insider Gaming reported that at least 30 developers were affected and that the real number is believed to be higher, with the cuts beginning last week. Vertical Slice published a report on 7 November based on employee LinkedIn posts identifying staff associated with Paramount Games and Skydance Interactive. David Vera, a lead engineer, said he was not affected but listed 25 people who appeared to have lost their jobs, including Kevin Lee, Rachel Li, Donald Sielke and Ballard.

David Ballard, an associate design director at Paramount Games, said on LinkedIn that he had been laid off along with colleagues. Rebecca Vessal, a senior gameplay and game AI programmer at Skydance Interactive, said most of her team had been let go and that she was not impacted. Writer Mallory Dobry, senior concept artist Ameorry Luo and lead VFX artist Michael Parsons were among those impacted, according to IGN.

The publicly identified cuts are concentrated on existing development teams at Paramount Games and Skydance Interactive rather than on Warner Bros. Games studios. Warner Bros. Games, which includes teams like NetherRealm and Rocksteady Studios, was folded into Skydance Games after Paramount completed its acquisition of Warner Bros. last month. Tony Driscoll was appointed to run Skydance Games.

Paramount closed the $110 billion acquisition of Warner Bros. Staff received an internal FAQ stating that WB Games and other units would retain their brand identities under the combined division.

Announced in June, Paramount Games encompasses gaming studios like Skydance Interactive, Skydance New Media and other Paramount and Skydance entities. Shawn Kittelsen detailed a renewed push into AAA gaming including Teenage Mutant Ninja Turtles: The Last Ronin and games based on Yellowstone, Tulsa King and Lioness. Development is still moving ahead on Marvel 1943: Rise of Hydra and an untitled Star Wars game, both with Amy Hennig at the helm.

Paramont merged Skydance Interactive, the developer behind The Walking Dead: Saints & Sinners, with Skydance New Media in July to form Paramount Games. Neither Vertical Slice nor Insider Gaming identified a cancellation or release-date change resulting from the layoffs. Warner Bros. Games has not yet made a similar layoff announcement.

The company wants to cut more than $6 billion in annual costs within three years. In a 1,705-word Day 1 memo, chair and CEO David Ellison and co-CEO Ynon Kreiz warned staff that layoffs would accompany the combination of the two companies. Variety published the memo. A second memo dated October 26 offered some employees a one-time voluntary buyout and required staff to work in the office five days a week.

Skydance scheduled its third-quarter earnings call for 5 p.m. ET on November 9, the first since the deal closed. Warner Bros. Games closed Monolith Productions, Player First Games and Warner Bros. Games San Diego in February 2025 and canceled Monolith’s Wonder Woman game.

The merged Skydance Games division owns the studios behind Mortal Kombat, Batman: Arkham, Hogwarts Legacy and the Lego games. Tony Driscoll was named president of Skydance Interactive. Dan Prigg was named executive vice president at Skydance Interactive. Andreas Silvers was named senior vice president of marketing and communications at Skydance Interactive.

Amy Hennig is known for her work on franchises like Uncharted and Legacy of Kain.

David Vera said “lost a ton of great talent” in a LinkedIn post this weekend and tagged 26 other people, recommending them for jobs. He also said the laid-off Skydance crew was not let go because of performance or problematic behaviors, calling them worthy folks who were pushing themselves to the limit.