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The Last of Us developer Naughty Dog hit with layoffs

By Aiden Crawford

LAS VEGAS, NV - FEBRUARY 23: Creative director for Sony Interactive Entertainment Neil Druckmann poses with the Outstanding Achievement in Story award for Uncharted 4: A Thief's End during the 20th annual D.I.C.E (Design, Innovate, Communicate, Entertain) Awards at the Mandalay Bay Convention Center on February 23, 2017 in Las Vegas, Nevada. (Photo by Gabe Ginsberg/Getty Images)
LAS VEGAS, NV - FEBRUARY 23: Creative director for Sony Interactive Entertainment Neil Druckmann poses with the Outstanding Achievement in Story award for Uncharted 4: A Thief's End during the 20th annual D.I.C.E (Design, Innovate, Communicate, Entertain) Awards at the Mandalay Bay Convention Center on February 23, 2017 in Las Vegas, Nevada. (Photo by Gabe Ginsberg/Getty Images) /
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The video game industry is currently grappling with a concerning trend of layoffs, and this issue has now affected PlayStation’s renowned first-party studio, Naughty Dog. The studio behind acclaimed titles like Uncharted 4: A Thief’s End and The Last of Us Part II has initiated the early termination of contracts for several contract developers. This move has sent shockwaves through the gaming community, highlighting the challenges faced by both established and contract game developers.

Layoffs within Naughty Dog were reportedly communicated internally last week, impacting various departments, with a significant focus on quality assurance testing. Sources have indicated that approximately 25 developers have been affected by these layoffs. It’s important to note that full-time staff appear to have been spared from these cuts, maintaining the studio’s stability, which had a headcount of over 400 as of July.

What’s particularly distressing about these layoffs is that no severance packages are being offered to the affected developers. This lack of support adds a financial burden to those already facing an uncertain future in the gaming industry. Additionally, those impacted, as well as remaining employees, have been pressured to keep the news under wraps, creating an atmosphere of secrecy and anxiety within the studio.

The timing of these layoffs is noteworthy, coming shortly after studio co-president Evan Wells announced his retirement at the end of 2023 after nearly two decades at Naughty Dog. Concurrently, Neil Druckmann, the creative director and lead co-writer of Naughty Dog’s recent hits, revealed a restructuring of the studio’s leadership.

These developments at Naughty Dog are part of a larger industry trend of job cuts in various major first-party studios. 343 Industries, the studio responsible for Halo, faced substantial layoffs earlier this year, and other industry giants like Electronic Arts, Ubisoft, Epic Games, and Embracer have also contributed to the unsettling pattern of layoffs. This constant stream of bad news has left many developers feeling uneasy about the stability of their positions in the industry.

The impact of these layoffs extends beyond individual studios, affecting the broader gaming ecosystem. Players and fans are increasingly concerned about the well-being of their favorite developers and the potential consequences for ongoing and future game development. As the industry grapples with these challenges, the gaming community must rally behind its creators and advocate for fair treatment and job security in an ever-evolving landscape.

While the gaming industry continues to experience growth and success, it is crucial to remember that this prosperity should extend to the individuals responsible for crafting the games we love. Balancing financial success with ethical treatment of game developers is a challenge that the industry must confront to ensure a sustainable and thriving future.

It’s worth noting that Naughty Dog’s situation is not an isolated incident. The ongoing layoffs across the industry raise important questions about the overall health and sustainability of the gaming business. The constant flux of bad news regarding job security can take a toll on developers, leading to a less stable and more stressful working environment.

These layoffs also coincide with Sony’s ambitious plan to sell 25 million PlayStation 5 units in the current fiscal year. While the gaming industry is experiencing immense financial success, it’s imperative that the well-being of the individuals behind these games is not overshadowed by corporate goals and profits.

The recent wave of layoffs at Naughty Dog and other major studios underscores the need for a more stable and supportive work environment within the gaming industry. Gamers, developers, and industry stakeholders must come together to address these challenges and ensure that the talented individuals creating our favorite games are treated with fairness and respect. The future of gaming depends on the well-being of the people who make it all possible.

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