Report: 3D Realms and Slipgate Ironworks hit with more layoffs

3D Realms and Slipgate Ironworks have both reportedly been hit with new layoffs.

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2023 was a stellar year for game releases, but inflation and risk aversion led to mass layoffs in the gaming sector. While Newzoo estimates the interactive entertainment industry generated over $184 billion in 2023, about 6,000 people lost their jobs. Layoffs affected the industry across all dimensions: large publishers like EA and Ubisoft made cuts alongside smaller subsidiaries like 3D Realms.

Just last month, reports indicated that Embracer and Saber Interactive made job cuts at 3D Realms. Now Apogee's Scott Miller says that this layoff spree has continued at the Danish publisher. Miller created 3D Realms back in the 90s and still has close ties with the group, so his information is assuredly solid.

"Incredibly sad, another big axing of devs at Danish 3D Realms/Slipgate this morning. We've hired two amazing devs from the last big cut there a few weeks ago. Might be able to hire 1-2 more to help soften the blow. This is from several insider friends there," Miller said on Twitter.

Boomer-shooter specialists 3D Realms and Slipgate Ironworks were acquired by The Embracer Group in 2021, and were both nestled under the Saber Interactive label.

In 2023, Embracer announced that it would be drastically cutting costs in an effort to control spending within the group. Whole studios like Saints Row developer Volition were closed down (alongside Timesplitter dev Free Radical), multiple projects have been cancelled, and management has pulled the layoff lever hundreds of times at the firm.

Last year, Embracer confirmed that it had laid off over 904 people, the majority of which were game developers. With today's news, that number has since risen.