Update: Eidos Montreal confirms 97 people laid off by Embracer

Update (01/29/24): In a statement released on X, Eidos Montreal confirmed it was caught up in Embracer's larger restructuring program and that 97 employees have been laid off.

"The global economic context, the challenges of our industry and the comprehensive restructuring announced by Embracer have finally impacted our studio. The difficult decision has been made to let go 97 people from development teams, administration, and support services," said the studio.

"We are working to support all impacted personnel through this transition. These very talented, highly experienced people are entering the employment market and we want them to find their next projects and are helping them to do so.

"As we navigate these difficult times, the well-being of our team is our priority and the continuous commitment to creating games that players will be able to enjoy in the nearby future."

Notably, the developer didn't mention anything about the Deus Ex project that was reportedly cancelled. "Thank you for your continuing report and well wishes," added Eidos. 

Original story: You didn't ask for this: Eidos Montreal's next Deus Ex game has allegedly been canceled by parent company Embracer. And that means an unspecified number of staff are being let go.

Per Bloomberg, the cancellation and resulting layoffs continue the Swedish company's cost-cutting initiative from mid-2023. And it comes months after Crystal Dynamics was hit with its own reductions.

While the project's cancellation hasn't been fully confirmed, several Eidos staffers have corroborated the studio's layoffs and said they're looking for work.

Embracer acquired both companies and Square Enix Montreal in 2022 from the Final Fantasy publisher. All three were a package deal, and Eidos and Crystal Dynamics said they'd return to their respective franchises, Deus Ex and Tomb Raider.

The last title in the former series was Deus Ex: Mankind Divided all the way back in 2016. Production on the new game was said to start in full later this year.

With this new cancellation, Eidos Montreal's last game will have been 2021's Marvel's Guardians of the Galaxy. It's said the studio will now pivot to a wholly new property, the first in its 16-year tenure.

Game Developer reached out to Eidos Montreal for comment, and will update when a response is given.