Gameloft Toronto staff laid off after studio 'substantially' reduces production activity

Gameloft Toronto has laid off an undisclosed number of employees after reviewing its "production capacities."

The Disney Mobile Kingdoms developer confirmed the news in a statement to GI.biz, and said it had implemented a "reduction in workforce" due to fluctuating market conditions.

"As a company, we need to constantly review our production capacities. After careful consideration and in response to the ever-changing market conditions we are facing, it has become necessary to implement a reduction in workforce," reads the statement.

"Unfortunately, this leads us to substantially reduce our production activity in our Toronto studio and to let go some employees of the office. This decision has not been taken lightly, and we understand the impact it may have on affected employees. We will be working with them, on a case-by-case basis, to find the best way to handle their situation."

Most departments affected by the Gameloft Toronto cuts

GI.biz was previously told 49 people, representing the majority of Gameloft Toronto, had been laid off. Speaking to the publication, sources claimed that only HR, IT, and management were unaffected by the job cuts, and that development of Disney Magic Kingdoms was being transferred to Gameloft's studio in Kharkiv, Ukraine. Another title the studio was reportedly working on has also been cancelled.

Posting on Linkedin, former Gameloft Toronto community team manager Tasha Huggins said "a lot of incredible talent has just entered the market. "If you are interviewing anyone from the Gameloft Toronto/Disney Magic Kingdoms team, please reach out to me. I would love another opportunity to talk about just how amazing they are," she added.

Layoffs and studio closures continue to decimate the video game industry. Thousands of developers have lost their jobs since the turn of the year, including those working at major players like Microsoft, Sony, Embracer, Take-Two, EA, and more.