By Sagar V. Mankar 
Night School Studio, the developer behind the popular game Oxenfree, has recently reduced its workforce, though the exact number of affected employees remains undisclosed.
The studio, which became part of Netflix’s gaming division in 2021, implemented these cuts in January 2025, catching many team members off guard.
According to Game Developer, these layoffs won’t affect the games currently under development at the studio. However, this development comes at a time when Netflix is actively restructuring its gaming division. The streaming giant has already shown signs of portfolio adjustment, having cancelled six games earlier this month and focusing on “party game” onward.
The gaming industry as a whole has faced significant challenges in early 2025. Reports indicate that nearly 1,000 game developers across 30 studios have lost their jobs in just the first six weeks of the year.
This trend has affected numerous companies, with major players like Ubisoft, Microsoft, Rocksteady, and Unity cutting jobs. Other affected studios include Reflector Entertainment, Huuuge Games, Moon Active, Iron Galaxy, HiRez, 10:10 Games, Crytek, Liquid Swords, and Sumo Group. Most recently NetEase Games and Toast Interactive faced job cuts.
Looking at Netflix’s broader gaming strategy, the company made a significant organizational change in October 2024 by shutting down Team Blue, their internal triple-A studio, less than two years after its establishment. The company also brought in Alain Tascan, former Epic Games EVP of development, to lead its gaming division. While Tascan spoke optimistically about “redefining the future of gaming,” the subsequent layoffs suggest uncertainty in Netflix’s gaming direction.
In another strategic move, Mike Verdu, the previous Netflix Games leader, transitioned to become VP of GenAI. Verdu plans to incorporate generative AI tools for creating new gaming experiences, though specific details remain vague.
Meanwhile, last month, Leanne Loombe, the Vice President of External Games, who oversaw second and third-party development and publishing operations, left the company after three years. She now become the head of the game division at Annapurna Interactive.
Currently, Netflix Games offers more than 100 mobile titles on Android and iOS devices as part of regular Netflix subscriptions. The service has begun beta testing game access on TV, PC, and Mac in select regions. However, the platform’s performance metrics remain private, as Netflix typically keeps such data confidential.