Summary
- Virtuos, known for its work on Metal Gear Solid Delta: Snake Eater and The Elder Scrolls 4: Oblivion Remastered, is laying off around 300 staff, roughly 7% of its workforce.
- Layoffs will initially focus on their Chinese operations but will also affect studios across the US, Europe, Asia, and multiple locations in France.
- Employees have reported a freeze on raises and bonus reductions preceding the layoffs, with a strike occurring at the Lyon branch in protest.
Virtuos Layoffs Hit Despite Recent Game Successes
Virtuos, a major game development and outsourcing studio credited with high-profile projects like Metal Gear Solid Delta: Snake Eater and The Elder Scrolls 4: Oblivion Remastered, is undergoing significant layoffs.
Approximately 300 employees, or 7% of its global workforce, are being let go. This reduction affects studios across several continents, with China being the first to feel the impact, followed by branches in the United States, Europe, and France.
Despite the commercial and critical success of Oblivion Remastered, Virtuos operated under a royalty-free contract for this project. This meant the studio did not receive bonuses tied to the game’s success, which contributed to financial strain. The result was a high-pressure environment for staff working on what was largely a showcase title.
Reports suggest that the studio froze salary raises and cut bonuses even before announcing layoffs, causing unrest among employees. A strike in Virtuos’ Lyon branch aims to challenge the layoffs and protect the studio’s future capacity.
Shift Towards AI and Industry Challenges
In recent years, Virtuos has moved towards integrating generative AI into its development processes. What began as occasional group-level presentations has escalated to mandatory AI training for employees across the company within just one year.
While this may streamline workflows, it coincides with staff reductions, fueling concerns about the role of AI replacing human creativity.
Metal Gear Solid Delta devs has maintained partnerships with major game publishers and contributed to various AAA and remaster projects. Nonetheless, the layoffs underscore broader industry challenges, where even studios involved with successful titles face workforce cuts.
Industry observers continue to watch how companies like Virtuos balance technological advances with workforce sustainability in an evolving market.
