Iron Galaxy Studios announced a second round of layoffs in as many years, cutting an unspecified number of staff as it restructures to align with what it calls the permanent new normal in video game development.
The Chicago-based studio, known for co-developing Metroid Prime Remastered and porting titles like Tony Hawk’s Pro Skater 3+4, Overwatch, and Apex Legends to Nintendo Switch, shared the news in a LinkedIn post on April 17. It stated that “a number of teammates and friends” are losing their jobs due to a revised company structure, echoing language from its 2025 layoff announcement that affected 66 employees.
Iron Galaxy cited ongoing market conditions since 2020 as the driving force behind the decision, saying publishers now apply different criteria when funding games and players consume interactive entertainment in fundamentally altered ways. The studio declared it impossible to sustain its current team size, even after last year’s reductions, and framed the cuts as an evolution rather than a retreat.
The announcement emphasized the studio’s core value of supporting talent, offering laid-off staff introductions and referrals to help them transition to new roles. Iron Galaxy noted it has operated offices in Orlando, Florida, and Austin, Texas, in addition to its Chicago headquarters and a Nashville site opened in 2022 with a pledge to create 108 jobs and invest nearly $1 million (approximately £810,000).
Since shuttering its original free-to-play title Rumbleverse six months after launch in 2023, Iron Galaxy has shifted focus to co-development partnerships and porting work, including assisting with The Last of Us Part I on PC and creating UEFN experiences for Fortnite such as Deathtrap Dungeon, released in January 2026.
The studio’s history includes contributing to the Windows ports of Batman: Arkham Origins and Batman: Arkham Knight before Rocksteady assumed full control of the latter due to post-launch issues. It has also collaborated with Retro Studios on Nintendo’s Metroid Prime Remastered, a project that brought it increased visibility in the Switch ecosystem.
Iron Galaxy did not disclose the exact number of employees affected in this round, and requests for comment from Game Developer and other outlets remained unanswered at the time of reporting. The lack of specificity leaves the scale of the reduction unclear, though the framing suggests a significant trim beyond symbolic adjustments.
By treating current industry volatility as a lasting condition rather than a temporary downturn, Iron Galaxy signals a strategic acceptance of reduced reliance on large-scale internal development in favor of agile, partnership-driven work—a shift mirrored across mid-tier studios navigating publisher caution and evolving player habits.
How many employees were laid off in Iron Galaxy’s most recent round?
The studio did not specify the exact number of workers affected in the April 2026 layoffs, only stating that “a number of teammates and friends” are losing their jobs.
What prompted Iron Galaxy to restructure and reduce its workforce again?
Iron Galaxy cited permanent changes in the video game industry since 2020, including shifted player behaviors and new publisher criteria for funding games, which it says make sustaining its prior team size impossible.
What support is Iron Galaxy offering to laid-off employees?
The studio said It’s providing introductions and referrals to help affected staff start the next chapter of their careers, consistent with its stated core value of supporting talent.
