Lost Boys Interactive is latest Embracer Group studio to suffer layoffs

An unknown number of employees have been laid off at Gearbox-owned developer Lost Boys Interactive.

On Friday, former producer Jared Pace shared the news on LinkedIn that a "sizable portion" of employees were let go.

"It seems a sizable portion of Lost Boys Interactive was laid off today, including myself," Pace wrote. "Still trying to understand the scope of it all, but sadly – this is a song and dance we're all familiar with."

Speaking to Aftermath, Pace said the layoffs were widespread and "affected all disciplines at all levels."

GamesIndustry.biz has reached out to Gearbox for further clarification on the number of employees affected.

Lost Boys Interactive was founded in 2017, and has contributed to games such as Borderlands 3 and Tiny Tina's Wonderlands. The studio was acquired by Gearbox in 2022, doubling the size of its staff in the process to over 400 people.

Gearbox is owned by Embracer, which acquired the Borderlands maker in 2021 as part of a $1.3 billion deal.

In September last year, it was reported that Embracer was considering the possible sale of the company as part of its restructuring program. Gearbox experienced a series of layoffs prior to this report.

Embracer Group has laid off well over 900 people — likely more than 1,000 — since it announced it was restructuring in July. Most recently, the company shut down Timesplitters developer Free Radical Design.

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