Fae Farm studio Phoenix Labs has laid off majority of staff

More details are set to be shared in the coming weeks.
fae farm phoenix labs layoffs

Phoenix Labs, the studio behind Fae Farm and Dauntless, has been gutted in a layoff impacting the “majority” of staff. While the studio had previously shed some staff in 2023, it now appears a complete studio reshape is on the cards.

“Today is another difficult day at Phoenix Labs,” the studio posted on LinkedIn. “We have made the tough decision to part ways with the majority of the studio as part of unfortunate but necessary changes to our operations.”

“We recognise and deeply appreciate the contributions of every individual impacted. Their talent, dedication, and creativity have left an indelible mark on our company and our games.”

In the coming weeks, the remaining staff will outline “what this means for Dauntless and Fae Farm“, and for the wider studio. For now, it does appear Phoenix Labs will continue to operate, although it’s less clear what these operations look like, and how many staff remain.

Read: Fae Farm developer Phoenix Labs is laying off 34 staff

What happened to Phoenix Labs?

Phoenix Labs has had a rocky few years, despite the relative success of recent releases, Fae Farm and Dauntless. With ambitions to expand, it was acquired by larger game developer Garena, in 2020. Just a few years later, in 2023, Phoenix Labs bought back its independence, and subsequently initiated rounds of layoffs.

Later, it was reported that Phoenix Labs had been purchased by a blockchain platform known as Forte. Per Game Developer, this went unannounced for some time.

Under Forte, more layoffs occurred, and CEO Jesse Houston and COO Jeanne-Marie Owens stepped down from their roles, citing “personal reasons.”

In the year that followed, Phoenix Labs turned focus to supporting its released games. It also, notably, released a Dauntless update that aggressively off-sided fans with its in-app monetisation and progression reset. While the game had been relatively well-received prior to this update, it now has an Overwhelmingly Negative rating on Steam. Many comments share a common sentiment that the game has become unplayable due to recent updates.

While there is no direct link between Dauntless‘ update and Phoenix Labs’ recent layoff announcement, it’s fair to say it may have contributed, as players have rejected the game in droves. Now, the future of the studio looks dour – and it’s unclear what happens next.

As always, our thoughts are with those set to be laid off at Phoenix Labs.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.