The studio behind the original Life is Strange is facing major layoffs as financial difficulties threaten its future projects.
French developer DON’T NOD is considering restructuring measures that could eliminate up to 85 positions in France. The announcement comes as the company enters court-supervised safeguard proceedings, while the Syndicat des Travailleurs et Travailleuses du Jeu Vidéo (STJV) video game workers’ union warns that the proposed cuts could leave the studio without enough employees to complete its ongoing project, internally known as P14.
The studio announced the safeguard proceedings on October 20. In its half-year financial update, DON’T NOD said the Paris Business Court had approved the process, which is intended to support business continuity and help the company find sustainable financing. The court opened an initial six-month observation period.
Safeguard proceedings are a financial protection process, not a declaration that the company is insolvent or closing. DON’T NOD said its ability to continue operating beyond January 31, 2027, depends on securing external financing.
DON’T NOD’s Struggle to Find Another Commercial Success
Although DON’T NOD is best known for creating the original Life is Strange in 2015, the studio also developed Life is Strange 2, with episodes released in 2018 and 2019. Development of subsequent mainline entries shifted to Deck Nine Games, while DON’T NOD pursued new franchises and original projects.
The studio went on to develop titles including Vampyr, Tell Me Why, Twin Mirror, Harmony: The Fall of Reverie, and Jusant, exploring different genres while maintaining its emphasis on narrative-driven experiences.
However, several of its more recent releases have struggled commercially.
In September 2024, DON’T NOD acknowledged that Jusant and Banishers: Ghosts of New Eden had performed well below expectations. The disappointing sales prompted the company to record a €24 million partial write-down associated with the two games, reflecting concerns that their future revenue would not cover their capitalized development costs.
The studio also suspended development of two unannounced projects, P12 and P13, recording an additional €7.6 million write-down as it reconsidered its production priorities.
Financial difficulties continued into 2025 and 2026. Lost Records: Bloom & Rage, a narrative adventure developed by DON’T NOD’s Montreal studio, also failed to meet sales expectations. Additionally, the company’s latest release, Aphelion, similarly performed below expectations, according to its October 2026 financial update.
These repeated commercial disappointments have added to the studio’s financial pressures, contributing to restructuring efforts as DON’T NOD attempts to reduce costs and secure financing for its remaining projects.
Up to 85 Positions at Risk
DON’T NOD’s September 1 restructuring proposal would refocus its French operations around a single production line and could affect up to 85 positions in France. The company said the plan would not affect its Montreal studio.
The studio reported €6.1 million in revenue for the first half of 2026, down 14% year over year, and an operating EBITDA loss of €4.3 million. It also reported €9.9 million in cash and cash equivalents at the end of June, compared with €15.5 million at the end of 2025. DON’T NOD said sales of Aphelion came in below expectations.
The company described the safeguard process as a protective measure that gives it time to address its financing needs while continuing operations. These proceedings freeze liabilities incurred before the court’s ruling for the duration of the process.
Layoffs Could Threaten Current Projects
In an October 27 statement, the STJV criticized the restructuring plan and said it would eliminate most non-managerial roles. The union listed proposed cuts affecting, among others, all 6 animator positions, 18 of 22 programmer positions, and 8 of 10 environment artist positions.
The union argues that the planned staffing structure would make it difficult to finish P14, which it says involves about 100 people and has not been scaled back. According to the STJV, management plans to rely more heavily on outside contractors, with managers overseeing that work while also taking on some production duties.
The STJV also alleges that the plan targets individual employees through its job-category definitions and calls that approach illegal. DON’T NOD has not addressed these allegations in its financial announcement. The union says the restructuring process is continuing through France’s employee consultation and review procedures.
The dispute has also been covered by GameWatcher and IGN.
Fans Express Concern for DON’T NOD’s Future
News of the potential layoffs has prompted concern among fans of DON’T NOD, particularly those who have followed the studio since its work on the original Life is Strange.
In a discussion on r/lifeisstrange, fans expressed sympathy for the employees facing an uncertain future. Some also voiced hope that the studio could recover from its financial difficulties.
One commenter suggested that the upcoming Life is Strange television adaptation might renew interest in the franchise and potentially benefit the studio, while another simply described the situation as a “real bummer.”
Others defended DON’T NOD’s commitment to developing original games, praising the studio for pursuing creative ideas rather than repeatedly returning to familiar formulas. One participant argued that the developer’s willingness to experiment had resulted in distinctive experiences, even when those projects failed to achieve widespread commercial success.
Some Fans Question the Studio’s Business Strategy
Beyond concerns for the studio’s employees, the discussion also turned toward DON’T NOD’s broader business strategy.
With several recent releases falling short of commercial expectations, some fans questioned whether the developer’s continued investment in original, narrative-driven games had been financially sustainable.
Several participants pointed to the studio’s difficulty establishing another consistently successful franchise following the original Life is Strange. Others suggested that its focus on narrative-driven experiences, while creatively distinctive, may limit its potential audience.
One commenter argued that DON’T NOD needed a more dependable franchise to support its operations, while another questioned whether studios producing niche games could remain financially viable without reaching a substantially larger audience.
DON’T NOD Faces an Uncertain Future
DON’T NOD’s immediate priority remains securing the financing needed to continue operations beyond January 2027.
While the safeguard proceedings provide temporary financial protection, the proposed restructuring has raised concerns about whether the studio will retain enough employees to complete its remaining projects.
For now, the outcome of the restructuring process remains uncertain, as does the future of Project P14.