Little Nightmares III Dev Announces Layoffs With Up To 75 Employees Affected
Supermassive Games, the studio behind Little Nightmares III, Until Dawn and The Dark Pictures Anthology, has announced it is beginning a "redundancy consultancy process" that could result in up to 75 job losses. The company described the move as a necessary step to ensure its long-term sustainability, though it did not give a detailed explanation for the cuts. It marks the latest blow for staff at a studio that has now cut jobs three times in as many years.
The announcement follows two earlier rounds of layoffs, with 90 roles cut in February 2024 and a further 36 in July 2026, suggesting deeper financial or structural pressures at the company. Little Nightmares III, developed for Supermassive by Tarsier Studios, received a more mixed reception than its predecessors, scoring 6/10 in Nintendo Life's own review, which praised its atmosphere but felt it was "an echo of what came before". Supermassive said its priority during the process would be supporting those affected.
In short
- Supermassive Games to cut up to 75 jobs via redundancy process
- Third round of layoffs at the studio in three years
- Follows cuts of 90 (2024) and 36 (2026) staff previously
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The strongest fair case each way — we don't pick a winner.
The case for
Companies operating in volatile industries must adjust their cost structures to survive market pressures and ensure long-term viability. The gaming sector faces significant challenges including rising development costs, market saturation, and shifting consumer preferences. Where a flagship title underperforms commercially or critically, difficult workforce decisions become necessary to preserve the studio's ability to continue operating and supporting the remaining workforce.
The case against
Three rounds of substantial layoffs within three years suggests deeper strategic failures rather than isolated market adjustments, and workers should not bear the cost of managerial decisions. The gaming industry has a troubling pattern of treating workers as expendable during downturns whilst executives and shareholders remain insulated from consequences. The company's lack of transparent explanation for these cuts—particularly following previous rounds—suggests insufficient accountability to those whose livelihoods are affected.
Explained simply
Supermassive Games is a British video game studio known for Until Dawn and The Dark Pictures Anthology. It also made Little Nightmares III, a horror adventure game developed with Tarsier Studios, the team behind the earlier Little Nightmares games.
Game studios rely on teams of artists, writers, designers and programmers to make and support their games. When a studio cuts jobs, it can affect staff, the projects they are working on and the company’s ability to make future games.