By Sagar V. Mankar 
Phoenix Labs, the developer behind popular titles Dauntless and Fae Farm, has announced a massive workforce reduction affecting the majority of its staff. This marks the fourth round of layoffs for the company since May 2023, dealing another blow to the gaming industry in early 2025.
The studio, which was founded in 2014 by former Riot Games developers, made the announcement via LinkedIn, describing it as “another difficult day at Phoenix Labs.” The company acknowledged the contributions of affected employees, praising their talent, dedication, and creativity while encouraging industry peers to consider hiring these experienced professionals.
While the developer didn’t reveal the exact numbers, Eurogamer reports stated that approximately 50 employees have been laid off. Former employees told them that this might effectively represent “a complete studio shutdown” rather than just a restructuring, though parent company Forte has not officially confirmed this interpretation.
This latest round of cuts follows a troubled period for Phoenix Labs since its acquisition by blockchain company Forte in 2023. The studio had already weathered several previous layoffs, including a significant reduction of 140 employees in May 2024, along with the cancellation of multiple ongoing projects.
Both Dauntless, a free-to-play Monster-Hunter-style game that marked the studio’s successful debut, and Fae Farm, released in 2023, now face uncertain futures. Following the internal announcement, Phoenix Labs staff explained the situation to the Dauntless community via Discord. They described the decision as “heartbreaking” and promised future updates about the game’s status.
This development contributes to an already challenging period for the gaming industry. January 2025 has seen multiple studios facing similar difficulties, including Ubisoft’s announcement of 185 job cuts and the closure of their Leamington studio in England.