People Can Fly has announced significant layoffs and the suspension of one of its major game projects. In a recent statement, CEO Sebastian Wojciechowski revealed that over 120 employees working on the unannounced ‘Project Bifrost’ are being let go as part of the company’s restructuring efforts. Additionally, development on another project, ‘Project Victoria,’ is being fully paused. These decisions are part of a broader strategy to scale back the company’s self-publishing initiatives.

Wojciechowski explained that persistent market pressures have exceeded their initial forecasts, requiring the studio to make difficult financial adjustments. While he reaffirmed confidence in the company’s ongoing projects, he acknowledged the need to align their plans with their current financial resources. Moving forward, People Can Fly will concentrate on a single independent game and explore new work-for-hire partnerships to stabilize operations.

This year has been particularly challenging for the Polish studio. Earlier in 2024, People Can Fly laid off more than 30 developers from ‘Project Gemini,’ a title backed by Square Enix. Prior to that, in April 2023, the studio scrapped ‘Project Dagger‘ after reassessing its production strategy, resulting in a financial writedown of nearly $20 million.

In spite of these setbacks, the company had previously expanded its operations by opening a Montreal studio to support the development of a triple-A title. They also entered a work-for-hire partnership with Microsoft for an unnamed project, referred to as ‘Project Maverick.’ However, the current status of ‘Project Maverick,’ along with ‘Project Gemini’ and ‘Project Bifrost,’ remains uncertain following the recent restructuring.

Wojciechowski concluded his statement by expressing gratitude towards the departing employees and underscoring the studio’s commitment to resilience and creativity. He emphasized that People Can Fly remains dedicated to delivering high-quality gaming experiences and will continue to pursue its long-term goals despite the current challenges.

Sources: Official statement from People Can Fly.

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