Dauntless devs hit with massive layoff once again for the second year in a row

The development of Dauntless has faced another setback since Phoenix Labs announced sweeping layoffs, leaving the future of the title uncertain. In a statement posted on LinkedIn, the studio confirmed that its owners have decided to part ways with most of its employees. This marks the fourth wave of layoffs since May 2023.

At that time, Phoenix Labs reduced its workforce by 9% before letting go of 34 employees in December. The layoffs continued in May 2024, with an additional 140 positions being eliminated. According to them, this was a part of unfortunate but necessary changes to the company.

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Recent layoffs at Phoenix Labs leave the future of Dauntless uncertain

This is the fourth wave of layoffs that hit the company (Image via Phoenix Labs)

Although this development is extremely unfortunate, it’s not entirely surprising. Phoenix Labs has been struggling with layoffs since 2023, following an investor buyout that later revealed itself to be orchestrated by blockchain company Forte Labs.

Last October, whistleblowers within the company exposed Forte Labs’ hidden involvement and the decision to cancel most of Phoenix Labs’ in-development titles, leaving only Dauntless and Fae Farm standing.

While Fae Farm still holds a presence in the gaming space, Dauntless had been struggling hard in the months leading up to this mass layoff. In December, the game launched its much-anticipated Awakening update, but instead of revitalizing the experience, it was met with an overwhelmingly negative reception from players and critics alike.

Many perceived Awakening as a last-ditch attempt to squeeze some money out of the title before its potential demise. One of the most recent blows before the layoffs came when the studio abruptly delayed the launch of Dauntless’ Umbral Reign season, which was slated to release earlier this month.

It's impossible to say what will happen to the game in the future (Image via Phoenix Labs)

With the studio now reduced to a skeleton crew, the reason for the delay has become painfully obvious, there simply aren’t enough developers left to sustain further updates.

As players await further clarification from Phoenix Labs, the grim reality is that Dauntless and Fae Farm may not have much of a future. Only time can tell if the remaining team can salvage these games or if they will be left to wither away.