Playtonic Announces Staff Layoffs Amid Industry Changes

Playtonic, the creators of Yooka-Laylee, is laying off some of its staff, as reported by the developer and publisher announced on social media. The announcement did not specify the number of employees affected but attributed the layoffs to the company’s struggle with “a period of profound change in how games are created and funded.”

Details of the Layoffs

According to a statement shared by Playtonic brand manager Anni Valkama Based on a LinkedIn post, the layoffs include staff members from various departments, including production, art, game design, narrative design, and UI/UX design. While Playtonic lists around 50 staff members on LinkedIn, the actual team size may be larger due to the studio’s growth into a publishing role and its upcoming release of Yooka-Replaylee.

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— Playtonic – CATTLE COUNTRY OUT NOW! (@PlaytonicGames) May 30, 2025

Industry Context

While Playtonic is not immune to the funding and sales challenges faced by many developers, the practice of hiring for a new project, such as Yooka-Replaylee, and subsequently laying off new hires before the game’s release is relatively common in the industry. Without further information, it is difficult to ascertain if this is the case for Playtonic.

Background on Playtonic and Yooka-Laylee

Yooka-Laylee was pitched as a spiritual successor to Banjo-Kazooie and other character-focused action-platformers when it was first announced debuted on Kickstarter in 2015. This connection is not surprising, considering that Playtonic was founded by former developers from Rare, the studio behind Banjo-Kazooie and other notable titles like Sea of Thieves.

Many of the games published by Playtonic under its “Playtonic Friends” label align with the nostalgic style of Rare, including the charming action-adventure game Lil Gator Game and the challenging platformer Demon Turf.

This article originally appeared on Engadget at Engadget.