Life is Strange developer Don't Nod has announced a "transformation initiative", a move widely seen as a precursor to layoffs at the French studio. The announcement follows reports back in June that the company could run out of cash by November 2026, and comes despite the studio releasing five games in the past three years, including the well-received Jusant and Lost Records: Bloom & Rage.

In a press release, Don't Nod cited "profound changes in the economic conditions of the video game industry" and a "deterioration in the Group's key economic indicators" as reasons it needs to adapt its operating model. Management has called a meeting with employee representatives for Thursday 3 September 2026, the first step in a consultation process ahead of a possible "job protection plan", and has also begun talks with the relevant labour union. No redundancies have been confirmed outright, but the language used strongly suggests cuts are likely.