By Sagar V. Mankar 
Krafton has confirmed a new round of layoffs at Striking Distance Studios, with reports suggesting that “most” developers at the studio behind The Callisto Protocol have lost their jobs.
Former employees have taken to social media to share news of the widespread job losses. Jesse Lee, who served as director of concept art, stated that “most of the devs were laid off,” while former cloud devops engineer Seth Spitkoski noted that “many” staff members had been affected by the cuts.
In a statement to PC Gamer, Krafton framed the decision as a restructuring move: “Striking Distance Studios has reduced the size of its team to remain agile, which creates a sustainable environment for the studio at its current stage of development.” The publisher assured that “the studio remains operational” and that these changes “will not impact any planned ongoing support.” However, Krafton declined to reveal the exact number of employees affected.
The layoffs mark the second major staff reduction at the studio, following The Callisto Protocol’s commercial underperformance. The game, which was meant to be a spiritual successor to the popular Dead Space series, received mixed reviews upon release. Critics praised its visuals and atmosphere but criticized clunky gameplay mechanics and technical issues.
Dead Space creator Glen Schofield founded Striking Distance in 2019, but parted ways with Krafton in 2023 after the game’s disappointing market performance. That departure coincided with an earlier round of layoffs that saw 32 employees let go as part of efforts to “realign the studio’s priorities.”
Since these initial cuts, Striking Distance has only released REDACTED, a roguelike spin-off of The Callisto Protocol, with no new major projects announced. The lack of announced future projects, combined with this new round of layoffs, raises questions about the studio’s long-term prospects.
These job losses reflect broader turmoil in the gaming industry during early 2025. Reports indicate more than 1,000 game developers across over 30 different studios have lost their jobs in just the first eight weeks of the year. Major publishers like Ubisoft, Microsoft, and NetEase Games have cut hundreds of positions.
Most recently, Warner Bros. Games has reportedly shut down multiple development teams, including Monolith Productions, Player First Games, and Warner Bros. Games San Diego.
Other affected developers include Freejam, Splash Damage, Piranha Games, Iron Galaxy, Sumo Group, Liquid Sword, NetEase Games, Toast Interactive, and Netflix’s gaming studio Night School.