Virtuos Confirms Mass Layoffs Impacting Nearly 280 Employees, Including Key Teams Behind Oblivion Remastered and Metal Gear Solid Delta

Virtuos, the global co-development studio currently working with Konami on Metal Gear Solid Delta: Snake Eater and recently assisting Bethesda with The Elder Scrolls IV: Oblivion Remastered, has officially confirmed mass layoffs affecting approximately 280 employees—or about 7% of its global workforce. The announcement, made public via an official statement on the Virtuos website, comes in the wake of reports first published by French journalist Gauthier Andres.

These cuts, according to Virtuos, stem from structural shifts in the video game development landscape, which is demanding more agile and geographically aligned service models. The layoffs reportedly span several of the studio’s global locations, with around 200 roles affected in Asia and approximately 70 in Europe, including fewer than 10 in France—home to the team working on the Oblivion Remastered project.

In its public statement, Virtuos outlined the strategic rationale for the reorganization:

“Virtuos is evolving to meet the changing needs of our partners and the industry. As game development grows increasingly complex, we are realigning our global footprint and capabilities to strengthen our offering in high-value co-development, ranging from full game engineering to advanced art, including creative content production and live services.”

The company further explained that this “evolution involves a rebalancing of roles across our studios and geographies,” primarily targeting underutilized teams and those in lower-demand service segments. The studio also acknowledged the importance of aligning its teams more closely with client locations, stating this is critical to support “the increasingly iterative nature of creative co-development.”

While the layoffs have been confirmed, Virtuos did not address allegations of internal mismanagement. Journalist Gauthier Andres had reported that employees were overworked on Oblivion Remastered, allegedly receiving no royalties for the title, with leadership aiming to deliver above-and-beyond quality as a “showcase” to attract future high-profile contracts. According to sources cited by Andres, this approach has resulted in staff burnout and low morale.

Despite the internal turbulence, Virtuos emphasized that its ongoing commitments remain unchanged. The studio reaffirmed its full dedication to its high-profile projects, including Oblivion Remastered, Cyberpunk 2077 collaborations, and Metal Gear Solid Delta: Snake Eater.

“Our immediate focus is on managing this transition with care, transparency, and respect,” Virtuos added, underscoring efforts to support affected employees through the process.

This round of layoffs adds to an ongoing trend of workforce reductions seen across the industry in 2025, further highlighting the volatile conditions developers face amid shifting market demands, budget constraints, and the increasing complexity of AAA game development.

What are your thoughts on studios using passion projects as portfolio pieces at the expense of employee well-being? Let us know in the comments.