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Virtuos Plans 300 Developer Layoffs as Lyon Studio Workers Strike

Failure to earn royalties from Oblivion Remastered combined with earlier pay freezes has exacerbated budget shortfalls driving the cuts

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Overview

  • The studio will cut roughly 300 developers, about 7% of its 4,200-strong workforce, across China, France and the United States.
  • Lyon-based employees initiated a strike to protest the job reductions and management’s mandatory generative AI tool training.
  • Leadership froze salary increases and reduced bonuses in February to manage rising development costs and strained margins.
  • Oblivion Remastered became one of 2025’s best-selling games without generating royalty income for Virtuos, intensifying its financial challenges.
  • Virtuos has not provided an official statement confirming the layoffs or outlining severance terms and future staffing plans.