Eidos-Montreal, the development studio most known for its work on the Deus Ex and Guardians of the Galaxy games, as well as Shadow of the Tomb Raider, has apparently gone through another round of layoffs, the second time the studio has let employees go in 2025, and the bad news doesn’t stop there.

Eidos-Montreal Layoffs Approaching 100 in 2025

According to Insider Gaming, at least a dozen people have posted on LinkedIn in the last week that they have lost their jobs at Eidos-Montreal, and that most projects that the teams were working on there have been canceled. 

As of now, it seems the studio is specifically focusing on only supporting development on Grounded 2 and Fable, both being led by Obsidian Entertainment and Playground Games under Microsoft, respectively, and an unannounced project that has been in the works since 2019. Once all three of those projects have their needs met, it is expected that there will be more layoffs.

Eidos-Montreal was acquired by Embracer Group in 2022 from Square Enix, and while things weren’t naturally going great for the team before the acquisition, it appears that corporate mismanagement and a variety of other issues that are plaguing the gaming industry these days have not helped at all.

In March of this year, Eidos let go of 75 employees, saying that one of its projects at the time was coming to an end and the studio had no way of reassigning those workers to other jobs. It was rumored that a new Deus Ex game had been canceled because Embracer thought the series was too niche. Whether or not that is true, the future for the studio is definitely questionable at best.

Needless to say, it is not a great time to be working on video games in 2025. Everyone is constantly looking over their backs, wondering when they’re going to be told by a higher-up that their skills are no longer needed. With all of this news, it does make you wonder if Eidos-Montreal has much of a future under Embracer Group at all.