Co-development services specialist Virtuous has confirmed rumours that it’s making hundreds of layoffs across its workforce, with around 200 roles in Asia and 70 in Europe affected. This amounts to 7% of its global headcount.
In a statement, the company said it’s “evolving to meet the needs of [its] partners and the industry”, saying it’s “realigning [its] global footprint and capabilities”.
The word “rebalancing” is how the company put the changes, with teams affected “facing lower occupancy and slower demand due to structural shifts in the industry”. Fewer than ten employees in France, where the core Oblivion Remastered team is based, were affected by the cuts according to the studio.
Virtuous explains the disproportionately high layoffs in Asia as being the result of declining demand for certain services and aligning with client locations.
“Over the past 12 months, Virtuos has deepened its commitment to premium co-development through key acquisitions of Beyond-FX, Pipeworks, and Umanaïa in North America, as well as Third Kind Games and Abstraction in Europe,” it said in a statement.
“These studios enhance our strengths in VFX, design, Unreal Engine programming, and creative development. This ongoing investment reflects our intent to grow in areas where our expertise and scale create lasting value, while selectively exiting service segments where demand is weakening.
“We need to better match the locations of our teams with those of our clients to support the increasingly iterative nature of creative co-development. This alignment is why the current reorganisation has a greater impact on our teams in Asia.”
Work continues on its existing partnerships, which include continued work on announced games like Oblivion Remastered, Cyberpunk 2077 updates, and the upcoming Konami collaboration Metal Gear Solid Δ: Snake Eater
Affected staff will be supported with “separation packages, career transition assistance, and opportunities for redeployment across [its] global where possible”.