Recent news indicates that several developers from Warner Bros. Montréal have lost their jobs. While the company hasn’t confirmed these layoffs, numerous ex-employees have shared their job searches on LinkedIn. Most of them wrapped up their work around March 13.
This situation echoes remarks by Netflix CEO Ted Sarandos, who pointed out that Paramount’s acquisition of Warner Bros. might lead to extensive cost-cutting, potentially exceeding $16 billion within 18 months. Such cuts often impact creative teams, and this case seems no different. (Source)
Warner Bros. has had ongoing challenges within its gaming division. According to its Q1 2025 earnings report, the company saw a staggering 48% drop in gaming revenue due to the absence of new releases. Several high-profile projects were also scrapped, like the expansion for Hogwarts Legacy, layoffs after the underwhelming response to Suicide Squad, and the cancellation of the Wonder Woman game. Additionally, the popular brawler Multiversus was shut down.
In a recent report, Warner Bros. Discovery called 2025 a “significant” year, but details on its gaming segment were scarce. They mentioned efforts to “rebuild” their video game pipeline, especially after being acquired by Paramount Skydance, but the entire Studios segment, including gaming, experienced a 14% revenue decrease year-on-year.
Industry experts are concerned; these layoffs may reflect broader trends in the video game industry, where many companies are realigning their strategies post-pandemic. As gaming preferences shift and competition increases, companies must remain agile. Many believe that successful video game development requires not just financial resources, but also a robust creative team. The impact of these layoffs on future projects will be closely watched by both fans and industry insiders.
We’ve reached out to WB Games for more details on the situation.
