Fae Farm developer Phoenix Labs has laid off over 140 employees following a restructuring process. The Vancouver, British Columbia-based studio which was founded in 2014 also canceled an unannounced project due for reveal in a month. This is one of the many layoffs announced this week.
“Today is an incredibly difficult day,” began the company’s official statement announcing the restructuring and layoff. “After a long period of evaluating how to navigate our economic environment, we have had to significantly restructure the company to pave a path for a strong future.”
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“We are reorganizing Pheonix Labs to focus on our best-in-class live service titles, Dauntless and Fae Farm, and serving their communities. This unfortunately means canceling work on all other projects at the studio, which will impact many of our colleagues immediately. We are giving notices to everyone whose roles are affected.
“This restructure has not come easily, and truly has been the last resort to ensure Phoenix Labs can survive, and thrive in the long term. It’s impossible to put into words how deeply we value every talented individual who has contributed their hard work and passion to every project at our studio.
“We are doing all we can to help our departing team members in this interim period and encourage any studios looking for incredible talent to speak with the on-of-a-kind people that have been a part of Phoenix Labs’ journey”.
Phoenix Labs was established “to create a place where diverse teams of people could come together to build deep multiplayer games,” the company explained on the About section of its LinkedIn page. The company also has offices in Montreal and Mateo.
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Phoenix Labs launched its first game Dauntless in 2019. They claimed it was the first game to launch with true crossplay and cross-progression. They followed it up with Fae Farm in 2023, a magic-infused farm simulator where players had the freedom to create a cozy home in the enchanted world of Azoria.
Messages from ex-Phoenix Labs employees
Although Phoenix Labs did not expressly mention the number of employees impacted by the restructuring, Principal Engineer Kris Morness who appears to have joined the studio about a year ago claimed between 140 to 160 people were impacted. Morness also hinted that the decision was made by Forte who acquired Phoenix Labs over a year ago.
A project that was due for announcement in a month was canceled too. The layoff will not affect Fae Farm and Dauntless. Both games will continue live operations and receive DLC support. Other impacted employees have made posts about the layoffs.
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“The end of an era – after nearly 9 years at Phoenix Labs, I, like so many other talented developers, was laid off,” wrote senior gameplay engineer Chris Colibaba. “I’m grateful for the time spent at a studio that provided the opportunity to learn and grow in so many ways as a game developer.”
Senior UI artist Russell Vaccaro wrote, “Unfortunately, I was part of the many layoffs at Phoenix Labs today. It was truly a wonderful place to work at, with kind and talented people. I will cherish the games we made together and the friendships that will be continued.”
“Following yesterday’s news, I’m sad to say that my time at Phoenix Labs has come to an end,” wrote influencer Matt Gardner. “Frankly gutted for the teams affected and the exodus of phenomenal developers, but has been a privilege to be a small part of the studio’s journey, and grateful to have worked with some truly passionate and talented folks this past year.”
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“Yesterday I hit a new milestone in my many years in games: it was the first time I’ve ever been laid off, which turns out to be a bit of a rarity in this industry,” wrote narrative director Anne Reid. “But it hurts, friends. Especially since this really was an amazing group of people – something I don’t say lightly.”
It is so unfortunate that the now-canceled game will not see the light of day, especially because the former team working on the game was in high spirits about it. It has been a tough week for workers in the game industry, with many studios announcing layoffs including Studio Wildcard, Singularity 6, and Square Enix.
