Eidos Montreal – the studio behind Deus Ex, Thief, and Marvel’s Guardians of the Galaxy – suffered another round of layoffs in late November 2025, with at least a dozen employees posting on LinkedIn about losing their jobs including gameplay director Samuel Daher. Insider Gaming reports the studio has canceled work on most of its projects and currently operates primarily as a support studio for three games: Grounded 2 (assisting Obsidian Entertainment), the Fable reboot (assisting Playground Games), and one unannounced internal project that’s been in development for six years but reportedly has “no chance of recouping costs.” Sources tell Insider Gaming that Eidos is preparing for another round of layoffs immediately after completing these support contracts. This marks the third wave of cuts in two years – 97 employees were laid off in January 2024, 75 more in March 2025, and now this latest undisclosed number in November/December 2025. The transformation from prestigious lead developer to contract support studio represents the spectacular collapse of one of gaming’s most talented teams under Embracer Group’s catastrophic mismanagement.
The Layoff Timeline – 172+ Jobs Lost
Eidos Montreal has been hemorrhaging talent in waves since Embracer Group’s $2 billion Saudi investment deal collapsed in 2023. Here’s the devastating timeline:
– January 2024: 97 employees laid off from development teams, administration, and support services
– March 2025: 75 employees laid off as “one of our mandates is coming to an end”
– November/December 2025: At least 12 employees laid off, exact number unknown
That’s a minimum of 184 confirmed job losses in less than two years, though the real number is likely higher. Many laid-off employees don’t post publicly about job loss, and Embracer hasn’t disclosed exact figures for the most recent cuts. Former gameplay director Samuel Daher’s LinkedIn post captures the grim resignation: “Hey there! Was working at Eidos, loved it and would have stayed, but times are difficult. I’m eager to find a new professional home to drive design on new productions.”
The March 2025 announcement was particularly chilling in its corporate euphemisms. Eidos stated: “It is not a reflection of their dedication or skills, but unfortunately, we don’t have the capacity to entirely reallocate them to our other ongoing projects and services.” Translation: we canceled the projects they were working on and have nothing else for them to do. The studio acknowledged letting go “these very talented, highly experienced experts” while claiming to “support them through this transition” – standard HR boilerplate that does nothing to address the fundamental problem of Embracer destroying viable studios.
From Lead Developer to Support Studio
The most devastating aspect of this story isn’t just the layoffs – it’s what Eidos Montreal has become. This is a studio that created the modern Deus Ex franchise (Human Revolution and Mankind Divided), rebooted Thief, developed Marvel’s Guardians of the Galaxy, and worked on Legacy of Kain properties. They were a lead development house capable of shipping AAA games from conception to release with creative autonomy.
Now, according to Insider Gaming’s sources, Eidos operates primarily as a support studio providing contract work for other developers’ projects. Their current workload consists of:
– Grounded 2: Supporting Obsidian Entertainment on the survival crafting sequel
– Fable reboot: Supporting Playground Games on the fantasy RPG revival
– Unannounced internal project: Six years in development, sources say has “no chance of recouping costs”
Being relegated to support work represents a massive downgrade. Support studios handle specific tasks – creating environmental art assets, implementing UI systems, conducting QA testing – rather than driving creative direction. You’re executing someone else’s vision instead of building your own. For developers who joined Eidos to work on Deus Ex sequels or original IP, being reduced to making art assets for Fable must be soul-crushing.
The Doomed Six-Year Project
The mention of an internal project six years into development that has “no chance of recouping costs” is particularly tragic. Six years is an enormous investment of time and resources. Whatever this project is – likely a new Deus Ex given the studio’s history – it’s apparently so far along that Embracer can’t justify killing it immediately, but also so financially unviable that sources believe it will never make money.
This creates a nightmare scenario for developers on that project. They’re working on something they know is doomed, and once it ships (or gets canceled), their jobs disappear. The Insider Gaming report explicitly states Eidos is “preparing for another round of layoffs right after the completion of these games.” Everyone at the studio knows what’s coming and can do nothing about it except update their resumes and hope they find landing spots elsewhere.
The Canceled Projects
Insider Gaming’s sources revealed that Eidos has “canceled work on most of its projects.” While specifics weren’t provided, previous reports from April 2024 indicated the studio had been “actively pitching” new games trying to secure funding under Embracer ownership. Those pitches apparently went nowhere.
The most high-profile cancellation was a new Deus Ex game that was reportedly in development when Embracer laid off 97 people in January 2024. Deus Ex: Mankind Divided launched in 2016 to critical acclaim but disappointing sales (2.8 million copies versus Square Enix’s expectations). Square Enix put the franchise on ice, and when Embracer bought Eidos from Square Enix in 2022 for $300 million, fans hoped it meant Deus Ex would finally get a proper sequel. Instead, Embracer killed it.
Reddit discussions show community frustration: “Despite this track record, the studio has been unable to secure funding for its own projects under Embracer’s ownership. Microsoft’s contracts are keeping the lights on, but Eidos is no longer steering its own creative direction. The shift from lead developer to support studio marks a significant downgrade for a team that once led major franchises.”
The Embracer Disaster
To understand how Eidos Montreal collapsed, you need to understand Embracer Group’s spectacular implosion. In 2022, Embracer was on an acquisition spree, buying studios and IP like it was building a gaming empire. They purchased Eidos Montreal, Crystal Dynamics, and Square Enix Montreal plus the Deus Ex, Tomb Raider, Thief, and Legacy of Kain franchises for roughly $300 million – considered a bargain at the time.
Embracer’s strategy was aggressive expansion funded by cheap debt and the promise of a $2 billion investment from Saudi Arabia’s Savvy Games Group. The plan was to grow massive, secure the Saudi investment to stabilize finances, then either go public or sell to a larger entity for enormous profit. CEO Lars Wingefors would pocket hundreds of millions while investors made returns on the expanded footprint.
Then the Saudi deal collapsed in May 2023. Suddenly Embracer was massively overextended – too many studios, too much debt, not enough revenue. The company entered what it called a “restructuring program” which was really just mass layoffs and studio closures. Saints Row developer Volition was shut down entirely. Free Radical Design (TimeSplitters) was closed. Hundreds of contractors across multiple studios were fired. And Eidos Montreal began its slow death by a thousand cuts.
One Reddit commenter explained the economics: “This wasn’t a ‘silly tech companies overhired’ story. This is a company betting big on ZIRP [zero interest rate policy] and foreign investors, and consequently losing big.” When interest rates jumped from near-zero to 5-6 percent in a couple years, Embracer’s debt became unsustainable. Game development requires huge upfront investment over 3+ years before any revenue arrives – a massive risk when investors can get 5 percent returns on zero-risk money market accounts.
Why Didn’t Embracer Sell Eidos?
The obvious question: if Embracer can’t fund Eidos’s projects, why not sell the studio to someone who can? The answer is that Embracer bought Eidos and other Square Enix studios for $300 million in 2022. In the current market with interest rates high and investment capital scarce, no one is paying that much for a mid-tier AAA studio. Embracer would have to sell at a loss, which means admitting failure and disappointing investors.
Instead, Embracer is slowly liquidating Eidos through attrition – letting staff go, canceling internal projects, and contracting the studio out for support work that generates some revenue to offset costs. Eventually, Eidos will be so hollowed out that it’s easier to just close it entirely or sell what’s left for whatever someone will pay. This death spiral is deliberate cost management rather than accidental mismanagement.
The Human Cost
Behind these numbers are real people whose careers and livelihoods have been destroyed. Samuel Daher, the former gameplay director who posted on LinkedIn, now has to find a new job in an industry experiencing its worst layoffs in history. Dozens of other Eidos employees are in the same boat – talented, experienced developers competing for limited positions at studios that are also downsizing.
Gaming Bolt’s report notes: “Eidos Montreal has been haemorrhaging employees through these lay-offs on an almost yearly basis at this point.” This creates survivor guilt and morale collapse for employees who kept their jobs. You watch friends and colleagues lose their livelihoods while wondering when your turn comes. You work on projects you know are doomed while updating your resume during lunch breaks. The creative passion that made Eidos great evaporates when everyone is just trying to survive until the next round of cuts.
Community Reactions
Reddit discussions show deep cynicism about the gaming industry’s treatment of developers. One highly-upvoted comment stated: “The people at the top made a series of bad decisions — acquiring tons of studios for top dollar prices — in hopes of Embracer at large being bought up by an even larger entity (likely in hopes of pocketing some nice profit at the same time, ofc). That deal (to the larger entity) fell through, and now embracer is hemorrhaging cash due to its massively expanded foot-print (and likely large amounts of debt taken on to acquire said footprint), and little in the way of cash flow to replace what they’re losing.”
Another commenter captured the frustration: “This highlights a significant problem in contemporary business practices. Those in leadership positions are the ones making all the choices, and when they err, it’s often the employees at the lower levels who suffer the consequences.” Lars Wingefors and Embracer’s executive team made billions in acquisitions funded by speculation about future growth. When their gamble failed, they kept their salaries while firing the developers who actually make games.
The broader context makes this even worse. 2023 was one of gaming’s best years – Baldur’s Gate 3, Zelda: Tears of the Kingdom, Spider-Man 2, Alan Wake 2, and dozens of other acclaimed releases. But 2024 became the worst year for gaming layoffs in history with an estimated 20,000+ jobs lost industry-wide. Eidos Montreal’s collapse is just one data point in an industry-wide crisis driven by unsustainable growth during the pandemic, followed by brutal corrections when interest rates rose and investment capital dried up.
FAQs
How many people has Eidos Montreal laid off?
At least 184 confirmed: 97 in January 2024, 75 in March 2025, and at least 12 in November 2025. The real number is likely higher as not all laid-off employees post publicly.
What projects has Eidos Montreal canceled?
A new Deus Ex game was reportedly canceled in January 2024. Most other internal projects have been canceled per Insider Gaming, with only three games remaining in various capacities of development/support.
What is Eidos Montreal working on now?
Support work for Grounded 2 (Obsidian’s game), the Fable reboot (Playground’s game), and one unannounced internal project six years into development that sources say has no chance of recouping costs.
Why is this happening?
Embracer Group’s $2 billion Saudi investment deal collapsed in 2023, leaving the company massively overextended with too much debt. Eidos is one of many studios being downsized or closed as Embracer desperately cuts costs.
Will there be another Deus Ex?
Extremely unlikely. The franchise was put on ice after Mankind Divided’s disappointing sales in 2016, a new entry was reportedly canceled in 2024, and Eidos no longer has the resources or autonomy to develop major projects.
Is Eidos Montreal closing?
Not officially, but Insider Gaming reports the studio is preparing for another round of layoffs after completing current contracts. The studio has been reduced to support-only work, which suggests eventual closure or sale.
Who bought Eidos from Square Enix?
Embracer Group purchased Eidos Montreal, Crystal Dynamics, Square Enix Montreal, and associated IPs (Deus Ex, Tomb Raider, Thief, Legacy of Kain) for $300 million in 2022.
What happened to Embracer Group?
Went on an acquisition spree funded by cheap debt and a promised $2 billion Saudi investment. When that deal collapsed in May 2023, Embracer entered brutal restructuring mode – closing studios, canceling games, and laying off thousands.
Can Eidos recover from this?
No. Once a studio loses this much institutional knowledge and creative talent while being reduced to support work, recovery is impossible. The studio that made Deus Ex: Human Revolution is effectively dead.
Conclusion
Eidos Montreal’s transformation from prestigious AAA lead developer to contract support studio facing imminent closure represents one of the gaming industry’s saddest casualties of Embracer Group’s catastrophic implosion. A team that created modern classics like Deus Ex: Human Revolution and Marvel’s Guardians of the Galaxy now survives by doing outsourced art and implementation work for other studios’ games while management prepares for the next round of layoffs. The 184+ jobs lost across three rounds of cuts in two years, the cancellation of a new Deus Ex and most other internal projects, and the reduction to support-only work on Grounded 2, Fable, and one doomed six-year project that will never recoup costs – all of this stems from Embracer CEO Lars Wingefors betting his empire on Saudi investment money that never arrived. Now developers who dedicated their careers to building one of gaming’s most respected studios are watching it die in slow motion while executives who caused the disaster keep their positions and salaries. When the final layoffs come and Eidos Montreal closes or gets sold for parts, gaming will lose another talented team to executive incompetence and financial speculation disguised as strategic growth.