WB Games hit with layoffs ahead of potential Warner Bros - Paramount merger

WB Games Montreal has been hit with layoffs as its parent company prepares to merge with Paramount.

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WB Games' Montreal-based studio has made a few layoffs across various fields, affecting devs that have been with the studio for years--including one that has 18 years with the group.

Over on LinkedIn, at least three developers have revealed that they have been let go from positions at WB Games Montreal. This follows a swath of layoffs conducted 8 months or so ago, which seems to be the results of WB management's earlier decisions to scale back its gaming ambitions and focus on four key franchises--Harry Potter, Mortal Kombat, DC, and Game of Thrones. This strategy was led by the prospect of cost savings and reducing spending on higher-risk projects.

WB is also facing a big merger with Paramount. If the deal passes regulatory scrutiny, WB Games will effectively become part of Paramount under the studios and streaming business.

Netflix co-CEO Ted Sarandos has warned that Paramount will lay off even more people as a result of the merger, with Sarandos speculating that the high amount of debt from the deal will cause Paramount to shed as much extraneous spending as possible.

It's unclear what exactly will happen to WB Games as a result of the Paramount merger, and Netflix themselves didn't even include the billion-dollar games division in its model for Warner Bros.' total valuation.

The company is devoted to games on some level, though. Paramount's Skydance Media has its own video games production company, Skydance Games, and the biggest upcoming project is the 1943 Rise of the Hydra title for Marvel, and a Star Wars project with Lucasfilm Games.

WB Games, however, is on a different level than Skydance Games when it comes to output and experience, with decades of self-funded and self-published worldwide releases across multiple generations of consoles.