Malaysia-based Lemon Sky Studios was hit with layoff with nearly 50 people affected. Lemon Sky Studios has an intimidating portfolio working as a support studio for some of the biggest franchises in the gaming industry including The Last of Us 1&2, Baldur’s Gate 3, Demon’s Souls, Spider-Man Miles Morales…and the list goes on.
While there has yet to be an official confirmation from the studio about the layoff, several now former employees of the studio have posted about the layoff noting that Thursday, March 27, 2025, was their last working day.
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Lemon Sky Studios describes itself as a “premier Southeast Asian game dev and animation studio specializing in AAA production in video games and animation”. They have completed over 150 projects, and at their peak, had over 550 full-time employees.
The layoff in the studio affected employees across multiple disciplines including administrators, animators, artists, project coordinators, and more. Some impacted employees said they were notified ahead by the company citing a lack of projects and redundant roles.
The layoff is a continuation of what has been a rough year for the studio and its parent company iCandy Interactive. Last year, the former heads of Lemon Sky were removed and later sued for allegedly misappropriating company funds.
Some staff anticipated the layoff following months of project droughts. According to sources, some staff got relegated to training new skills while waiting for new projects.
Ex Lemon Sky Studios employees share their thoughts
Lemon Sky Studios employees celebrate their 10th anniversary
Several ex-employees of the studio have added the infamous #OpenToWork badge to their LinkedIn profiles or posted about being laid off while seeking the help of their connections to land new roles.
Cinematic artist Hong Yih Low, project coordinator Yuen Haw Hor, UE and 3D lighting and composer Xuan Xian Loke, and 3D animator Ga Wei Yau, all posted about being laid off due to downsizing.
Junior 3D modeler Nabil Azfar who spent four months with the studio provided more context to the layoff. “To be honest, I don’t like to post negative stuff here, but this needs to be said for my sake during this trying time.”
“Unfortunately, on the 27th of March, just 10 days after my birthday, I was 1 of the less than 50 people who were announced to be laid off from Lemon Sky Studios due to the redundancy of their company and the lack of new projects been going on for now. Yesterday was my last day working at the office.
“The HR and management tried everything to keep me and the people that have been affected to keep us working with them and tried other alternatives to prevent this from happening, but to no avail.”
A handful of layoffs and studio closures are still happening in the video game industry as the industry continues to go through a major shift. GameBaba Universe has reported several layoffs this year—and there’s no guarantee more won’t happen.
