Layoffs, or terminations of employment, have become a common trend once again in the video game industry in 2026, affecting both large AAA studios and smaller indie developers. One notable example is Warner Bros., which recently carried out layoffs at their Montreal office. This move has garnered significant attention and discussion among the public, particularly within the gaming community.
Details of Employee Layoffs at Warner Bros. PHK in Montreal Branch
The layoffs at Warner Bros. Montreal have been confirmed by Ted Sarandos, the Co-CEO of Netflix, via Bloomberg. It was reported that Warner Bros. rejected an acquisition deal, opting instead to accept a substantial offer from Paramount a few months ago.
With the official announcement of the agreement between Warner Bros. and Paramount, significant cost-cutting measures are underway, including budget reductions and layoffs. Three former employees have publicly announced their departure from the company and are now seeking new opportunities on their respective LinkedIn profiles.
This situation is quite understandable, considering Warner has been struggling in the video game industry over the past few years. A report from Eurogamer revealed that the company’s first-quarter revenue in 2025 dropped by as much as 48 percent.
Among the causes are the cancellation of Hogwarts Legacy’s planned expansion, layoffs at Rocksteady following the underperformance of Suicide Squad: Kill The Justice League, the suspension of production for Wonder Woman, and the closure of Multiversus. Additionally, every game-focused studio has experienced a 14 percent decrease in revenue compared to the previous year.
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