Iron Galaxy Studios Announces New Round of Layoffs

Developer Iron Galaxy, known for co-developing the Spyro the Dragon remake trilogy and Crash Bandicoot N. Sane Trilogy, has announced that it has laid off several employees as part of a company downsizing. The number of affected staff was not disclosed, but the studio stated in a LinkedIn post that it will do its best to support those impacted. The studio added that “players consume games in new ways,” and that “publishers have different criteria for investing in game development,” noting that these shifts have affected its partners. Back in early 2025, the company laid off 66 employees.

The full post:

Today, Iron Galaxy Studios regrets to announce that we are reducing our company size.

A number of teammates and friends are losing their jobs as we adjust to a new company structure. We are terribly sorry to lose them as we take steps to adapt to the climate of the video game industry. It’s time for us to evolve again.

Since we first got started, we have taken on many different forms as a company. Throughout these different phases, we have changed our focus, our mission, and our size. We’ve worked with the best creators of interactive entertainment and made some games of our own. Along the way, we’ve seen the industry that we serve expand and contract in surprising ways.

Ever since 2020, when everything about making video games started to change, people have been waiting for business “to get back to normal.” These are the conversations we’ve had with colleagues and partners on our travels to the places where game creators gather. This year, we’re adopting a new posture to accept these current market conditions as permanent.

Players consume games in new ways. Publishers have different criteria for investing in the development of games. This new normal has impacted all our partners. As Iron Galaxy adapts, we must make painful decisions about what we can be as a company. It’s impossible for us to sustain the team size that we’ve carried this past year, even after our downsizing from last year.

We hate losing people. One of our core values is providing a wonderful experience for the talented folks who work for us. The best we can do for them today is to help them start writing the next chapter of their career. They are all welcome to introductions and referrals from us. If you need good people, please be on the lookout for them.

Thank you.