Funcom Announces Layoffs Despite Dune: Awakening Being Its “Biggest Release” Across its 32-Year History
In an unexpected and troubling development, Funcom, the studio behind the recently launched MMO survival title Dune: Awakening, has announced that it will begin laying off an undisclosed number of staff. The news was first confirmed in a statement sent to GamesIndustry.biz, in which the company simultaneously described Dune: Awakening as “the biggest release we’ve had in our 32-year-long history of making great games.”
The decision comes despite the game’s remarkable commercial and critical success. Released on June 10, 2025, Dune: Awakening quickly surged in popularity, selling over one million copies in its first month, ranking among the most-played titles in June, and immediately entering the list of highest-grossing games of 2025. For Funcom, this represented the fastest-selling and most financially successful launch in its long history.
Yet, despite this historic achievement, layoffs are now underway at the studio. Funcom stated that the restructuring is driven by the shift from development to long-term live operations management, as well as preparations for a major console release next year.
In the official statement, Funcom explained:
“The game has already shown incredible potential and the right way forward is to focus our internal resources on releasing new content, features, and enhancements. The transition from development to long-term live operation, while also building towards a major console release next year, will require us to restructure our teams and focus our resources from across projects and studios. Unfortunately, this means having to say goodbye to cherished colleagues. This difficult process is starting now, and we cannot yet determine the exact impact. We are working to find new opportunities for those affected.”
The company added that its current priority is to support employees losing their positions, though no further details were provided:
“Our focus now is to provide these team members with the support and guidance they need, and we ask for your understanding at this time as we will not make further comments during this process.”
The timing of the layoffs is especially striking given that Funcom has only just released the first major DLC and content update for Dune: Awakening. The update was accompanied by a free weekend trial designed to attract new players into the game’s vast survival sandbox set on Arrakis.
This restructuring highlights a troubling trend in the games industry, where even record-breaking launches and strong revenues do not guarantee job security for development teams. Funcom, despite its clear success with Dune: Awakening, is following the same pattern of “post-launch realignment” that has become increasingly common among major studios transitioning from development cycles to live service operations.
For many observers and fans, the irony is hard to miss: the studio’s most successful release to date is also directly tied to a wave of layoffs, leaving players and industry watchers questioning how sustainable the live service and blockbuster release model truly is for developers.
How do you feel about studios announcing layoffs right after their most successful launches? Does this restructuring model hurt trust between developers, publishers, and players?
