Bit Reactor, the studio behind the critically acclaimed Star Wars Zero Company, furloughed up to 80% of its staff weeks before the game’s August 27 launch, according to multiple sources.
Bit Reactor, the Maryland-based studio behind the tactical RPG Star Wars Zero Company, furloughed up to 80% of its staff in the weeks leading up to the game’s August 27 launch, a decision confirmed by multiple sources including Game File and Kotaku. The move, described as a difficult decision
by a studio representative, was made without input from publisher Electronic Arts (EA) or Star Wars license holder Disney. Despite the game’s stellar reception—earning the highest Metacritic score for a Star Wars title since 2004—furloughed employees remained unpaid, with only a “skeleton crew” left to handle post-launch support.
Furloughs Amid Financial Strain and Legal Disputes
The furloughs came as Bit Reactor faced severe financial strain. A lawsuit filed by co-founder Alison Kelly in 2024 revealed the studio had furloughed most of its employees and terminated contractors
just weeks before launch, according to a filing reviewed by Game File. Zachariah Scott, a former senior technical artist, alleged the studio concealed the fact that the team was furloughed weeks ago,
citing conversations with nearly a dozen employees who all reported being furloughed three weeks prior to the game’s release.
Scott’s claims align with reports from multiple outlets, including PC Gamer and Stevivor, which noted that 80% of Bit Reactor’s workforce was impacted. A studio representative told Game File that the furloughs were a difficult decision
made before the game’s performance was known, but the move has drawn criticism for its timing. “It is sick and weird to have all of these EA and Disney folks as well as Bit Reactor Senior staff making all of these 10/10 posts about Star Wars Zero Company being such a huge success while seemingly concealing the fact that the team was furloughed weeks ago,” Scott wrote on LinkedIn.
Co-Founder Lawsuit Adds to Studio Turmoil
The furloughs have also surfaced in an ongoing legal battle between Bit Reactor’s co-founders, Alison Kelly and Greg Foertsch. Kelly, who served as chief operating officer until 2024, sued Foertsch, alleging he forced her out and denied her an equal ownership stake. A court filing from August 12, cited in Game File reports, stated that Bit Reactor had furloughed most of its employees and terminated contractors.
Foertsch’s legal team has denied her claims, arguing that her role was reduced due to poor work performance
and disputing her assertions about equity and access to company records. The case remains unresolved, with the trial postponed to early 2027.
A Critical and Commercial Success, But Uncertain Future
Despite the furloughs, Star Wars Zero Company has been a critical and commercial success. The game, which launched for PC, PS5, and Xbox Series consoles, became the top-selling title on Steam and received near-universal praise. Critics called it a new all-timer Star Wars game
and a stunning debut for Bit Reactor,
according to PC Gamer and Kotaku.
However, the studio’s future remains uncertain. A Bit Reactor representative told Game File that the company hopes to bring furloughed workers back with restored pay
if the game’s commercial performance justifies it. Scott, however, expressed skepticism, noting that many affected workers were less confident that even if there were returns, that all who were furloughed would get their old jobs again.
Broader Implications for the Gaming Industry
The situation highlights ongoing challenges in the gaming industry, where studios often face financial instability despite critical or commercial success. Bit Reactor’s case follows a pattern of developers being left without pay or benefits after major releases, a trend criticized by industry observers. Scott’s comments reflect a broader frustration: It is a gross but all too common sight to see, another corporate game hitting the top of Steam while the team is left looking for work and cut off from any possible profit sharing.
The fate of Bit Reactor—and its furloughed staff—remains tied to the game’s long-term performance. With no clear timeline for restoring pay or addressing the co-founder lawsuit, the studio’s next steps will be closely watched by both employees and industry analysts.
