Iron Galaxy Studios Lays Off Staff, Blames “Current Market Conditions”

On April 17, Iron Galaxy Studios published a LinkedIn post announcing its second round of layoffs in as many years. The number of workers being laid off was not specified, but the studio explains that the layoffs are necessary in order to adapt to the ongoing market conditions in the video game industry. The announcement also notes that, since 2020, the industry has changed—the way people play games and what publishers look for in games to fund—and instead of waiting for things to go back to normal, the studio has had to adjust its expectations and accept the current market as the new normal going forward.

In the post, the studio notes that “as Iron Galaxy adapts, we must make painful decisions about what we can be as a company. It’s impossible for us to sustain the team size that we’ve carried this past year.” This lack of sustainability is in spite of a round of layoffs in 2025 that saw 66 workers lose their jobs. Iron Galaxy isn’t the biggest game studio in the world, but it has some heavyweight credits under its belt, including working on the Windows port for Batman: Arkham Origins and Batman: Arkham Knight, before Rocksteady took over development of the latter due to a buggy launch. The studio also worked on Tony Hawk’s Pro Skater 3+4, which launched in July 2025. The studio also worked on a number of Nintendo Switch ports, including Overwatch, Dauntless, Apex Legends, and Metroid Prime Remastered.

The full announcement reads:

Today, Iron Galaxy Studios regrets to announce that we are reducing our company size.

A number of teammates and friends are losing their jobs as we adjust to a new company structure. We are terribly sorry to lose them as we take steps to adapt to the climate of the video game industry. It’s time for us to evolve again.

Since we first got started, we have taken on many different forms as a company. Throughout these different phases, we have changed our focus, our mission, and our size. We’ve worked with the best creators of interactive entertainment and made some games of our own. Along the way, we’ve seen the industry that we serve expand and contract in surprising ways.

Ever since 2020, when everything about making video games started to change, people have been waiting for business “to get back to normal.” These are the conversations we’ve had with colleagues and partners on our travels to the places where game creators gather. This year, we’re adopting a new posture to accept these current market conditions as permanent.

Players consume games in new ways. Publishers have different criteria for investing in the development of games. This new normal has impacted all our partners. As Iron Galaxy adapts, we must make painful decisions about what we can be as a company. It’s impossible for us to sustain the team size that we’ve carried this past year, even after our downsizing from last year.

We hate losing people. One of our core values is providing a wonderful experience for the talented folks who work for us. The best we can do for them today is to help them start writing the next chapter of their career. They are all welcome to introductions and referrals from us. If you need good people, please be on the lookout for them.

Thank you.