Phoenix Labs, Fae Farm Developer, Lays Off “Majority of the Studio”
Phoenix Labs, the independent studio behind Fae Farm and Dauntless, has laid off a significant portion of its workforce, according to an announcement the company made on LinkedIn. This move comes on the heels of a prior round of layoffs in May 2024, in which over 100 staff members were let go and all ongoing projects were reportedly canceled to concentrate on Dauntless and Fae Farm.
In a statement posted on LinkedIn, Phoenix Labs said:
“Today is another difficult day at Phoenix Labs. We have made the tough decision to part ways with the majority of the studio as part of unfortunate but necessary changes to our operations.
We recognize and deeply appreciate the contributions of every individual impacted. Their talent, dedication, and creativity have left an indelible mark on our company and our games.
We will share more details in the coming weeks about what this means for Dauntless and Fae Farm. For now, our focus is on supporting those affected through this transition.
To our industry peers, we encourage you to reach out to these exceptional individuals – they are some of the best in the business.”
While it remains unclear how many people were employed at Phoenix Labs at the time of these latest layoffs, the company notes that updates regarding Dauntless and Fae Farm will be provided in the near future. Some fans worry that the mention of the two games in the layoff announcement could imply a reduction in their post-launch support—or even the potential discontinuation of Dauntless—though that possibility is currently speculative.
Turbulent Times Following Forte Labs Acquisition
The news comes just two years after blockchain firm Forte Labs acquired Phoenix Labs in a deal that was initially kept secret—former employees were required to sign NDAs, according to a report from Game Developer. This acquisition led to tensions within the studio, with some employees feeling uneasy about the direction the company was taking.
Shortly thereafter, Dauntless launched on Steam, only to face backlash for its in-app monetization and a controversial Awakening update that wiped players’ progress. The game’s rating on Steam now stands at “Overwhelmingly Negative.” Once lauded for its cross-platform functionality upon releasing in 2019 under Epic Games’ publishing, Dauntless has since struggled to retain its positive reception.
Industry-Wide Layoffs Continue
The recent Phoenix Labs announcement follows a broader trend of layoffs hitting the gaming sector. On the same day, Ubisoft also revealed major staff reductions and the closure of one of its studios. These cost-cutting measures across multiple companies appear to be accelerating, leaving many in the industry bracing for further job losses.
Are you concerned about the fate of Dauntless or Fae Farm after these layoffs? Share your thoughts on how these staff cuts might affect both games and the broader gaming industry.
