Don’t Nod Plans Restructuring in France, Threatening Up to 90 Layoffs

French studio Don’t Nod is tightening its operations again after another round of disappointing performance, with internal documents pointing to a new social plan that could affect as many as 90 employees. The company says it is moving toward a major restructuring that would leave only a single production line in France—meaning one team working on one project at a time—while also forecasting a worst-case outcome if new funding does not materialize by early 2027.

New restructuring plan could cut up to 90 jobs in France

In the aftermath of an internal meeting held to address its worsening economic situation, Don’t Nod confirmed it is heading toward a new social plan. The measure, discussed as part of solutions to the studio’s financial pressure, could reach up to 90 staff members.

This follows earlier downsizing that shows how quickly the studio has been forced to adapt:

• In autumn 2024, Don’t Nod carried out a social plan that resulted in the departure of around sixty employees.
• By June 2025, the development team at Don’t Nod Montréal—responsible for Lost Records: Bloom & Rage—had also undergone workforce reductions.

From multiple production lines to one: why Don’t Nod says it must shrink

Don’t Nod previously operated with up to six internal production lines when it was running at full capacity. However, declining results over time contributed to a steady deterioration of its economic position. The company also points to investors becoming harder to reach, including its major shareholder, Tencent, which did not plan to provide additional investment into the Oskar Guilbert-led studio.

Under the latest transformation approach, Don’t Nod says it would reduce back to a single production line in France. In practical terms, that means:

• Keeping only one team in France
• Working on one project at a time
• Leaving the Montréal studio separate, where development continues on a game tied to a Netflix franchise

Don’t Nod also lays out a deadline for its survival if funding does not improve. Without the proposed measures—and in the absence of a “miracle” financing scenario—the studio estimates it could shut down entirely by the end of January 2027.

2026 revenue drops sharply as key releases feed the numbers

The company’s financial picture is also described in the documents. In the first half of 2026, Don’t Nod’s game sales generated €3.46 million in revenue, down from €6.58 million in the same period a year earlier.

The reported sales mix includes:

• Accounting recognition tied to part of PlayStation Plus and Xbox Game Pass revenue for Lost Records: Bloom & Rage
• Early sales of Aphelion, released on April 28, 2026
• Sales from other titles in the studio’s catalogue

Don’t Nod also stresses that prior cost-reduction efforts have not been sufficient to restore long-term competitiveness. In the document, the company notes that despite already implemented performance and cost-cutting actions, the transformation plan under consideration could lead to an employment adjustment in France, potentially involving up to 90 eliminated roles.

Where the studio goes next

Don’t Nod’s leadership frames the current transformation as an emergency response to ongoing financial strain rather than a routine optimization. With the company signaling both a single-line production model for France and a potential end-of-January 2027 closure scenario if funding does not arrive, the next phase will likely be dominated by negotiations around the social plan and how quickly the studio can reorganize its teams.