Gearbox-owned studio Lost Boys Interactive hit by "sizable" layoffs

UPDATE 2pm UK: A spokesperson for Lost Boys Interactive has confirmed the layoffs to Eurogamer.

"Lost Boys Interactive made the difficult decision to restructure our studio to ensure we can succeed in spite of headwinds facing the industry right now," reads the statement. "Unfortunately, this does mean we will separate from some of our team members and we’re working closely with those affected. We know this is a hard time for this talented and experienced group of people and will provide support and assistance through this transition to those leaving."

Gearbox declined to comment.

ORIGINAL STORY 12pm UK: A "sizable" portion of the Gearbox-owned studio Lost Boys Interactive has been laid off.

As reported by Aftermath, the developer employed over 400 people but many have taken to LinkedIn to share news of layoffs hitting the studio.

These layoffs are the latest in the restructuring programme of Embracer, the umbrella company which owns Borderlands developer Gearbox (which in turn owns Lost Boys Interactive).

"It seems a sizable portion of Lost Boys Interactive was laid off today, including myself," producer Jared Pace shared on LinkedIn last week. He told Aftermath layoffs had "affected all disciplines at all levels".

Eurogamer has contacted Gearbox and Embracer to clarify details of the layoffs.

Illustrator Greg Lambrakis and animator Alli Gehrer were among others on LinkedIn confirming they've lost their jobs.

Said art director Nick Barone: "Yesterday was easily the hardest day of my career. Even though I was spared in the company-wide layoff at Lost Boys Interactive, so many talented artists and flat-out fantastic people were let go."

Lost Boys Interactive is a support studio founded in 2017 that contributed to the likes of Tiny Tina's Wonderlands, Diablo 4, and Borderlands 3, among others. It was acquired by Gearbox in 2022.

Back in September last year, it was reported Embracer was considering selling Gearbox. Gearbox then emailed staff to say "many options" were "under consideration".

Multiple rounds of layoffs at Embracer-owned studios are all part of the conglomerate's "comprehensive restructuring programme" after a $2bn investment partnership collapsed, reportedly with Saudi Arabia funded Savvy Games.