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Eidos-Montréal Hit with More Layoffs as Studio Shifts to Xbox Co-Development

Sources say the studio canceled most internal projects to prioritize co-development on Xbox titles.

Overview

  • Insider Gaming and staff LinkedIn posts indicate at least a dozen roles were cut at the Montreal developer in recent weeks.
  • Staff say the reductions touched design, production, writing, 3D art, concept art, and animation teams.
  • Reporting points to a pivot toward support work on Microsoft’s Grounded 2 and Playground GamesFable.
  • Additional job cuts are forecast once current co-development work wraps, according to the same sources.
  • Neither Eidos-Montréal nor Embracer has commented; the studio previously cut about 75 roles in March 2025 and 97 in 2024 during Embracer’s restructuring after a failed $2 billion deal.