MechWarrior dev Piranha Games reportedly affected by redundancies

MechWarrior 5: Clans developer Piranha Games has reportedly conducted a round of layoffs.

Former employees of the Canadian studio shared on LinkedIn that they were affected, including those working in writing, FX/VFX, environment and technical art, level design, and software engineering.

According to one worker, the cuts were made due to “economic restructuring.”

GamesIndustry.biz has contacted Piranha Games for confirmation and the number of employees affected.

Last January, Swedish games firm Enad Global 7 (EG7) cut staff at Piranha Games and shut down Toadman Interactive.

The cuts affected 38 employees at Piranha Games following a “business operation plan” after MechWarrior 5: Clans launched.

“Despite the phenomenal work by the team at Piranha, the game failed to reach new audiences and expand its core audience as expected and therefore has not met the necessary sales targets, which has forced us to undertake necessary actions,” said EG7 CEO Ji Ham.

The decision to shut down Toadman Interactive was due to “continued industry challenges and the studio’s inability to secure new work-for-hire contracts at a necessary pace.”

In January 2020, Toadman, publisher Sold Out, and creative agency Petrol merged to establish EG7. Later that year, the company purchased Piranha Games for $24.1 million.