Playtonic, the British game studio behind Yooka-Laylee, has confirmed that it has let go of several employees, following a wave of reports earlier this week. The studio, founded in 2014 by veterans of Donkey Kong Country and Banjo-Kazooie, cited the ongoing turmoil in the gaming industry as the reason behind the difficult decision.
In an official statement shared on social media, Playtonic described the layoffs as “incredibly heartbreaking,” and emphasized that they were only implemented after exploring every other possible option. The studio also praised the contributions of the departing team members, noting that those affected had “shaped” the company’s games, culture, and identity.
“We’re experiencing a period of profound change,” the statement read, referencing the wider struggles currently plaguing the industry. The studio pledged support for its former employees, promising to assist them with their “next steps.”
Part of a Larger Trend
Playtonic’s decision comes as yet another reminder of the ongoing instability in the games industry. The month of May alone has already seen multiple studios—including EA’s Codemasters—announce similar cuts. Earlier in 2025, companies like Ubisoft and Eidos Montreal also implemented major restructurings, as studios across the board continue to grapple with shifting market conditions and rising development costs.
What This Means for Yooka-Laylee
Fans of the Yooka-Laylee franchise may find the news concerning, particularly with the remaster currently in development and targeting a 2025 release. While Playtonic did not comment on how the layoffs may affect the project, players are hoping the studio can still deliver on schedule.
As the industry continues to recalibrate, studios both big and small are being forced to make hard decisions. For now, many are watching closely to see how Playtonic adapts—and whether Yooka-Laylee’s remastered return will stay on course.
