Skydance Games Layoffs Hit Following Warner Bros. Merger

Skydance Games has undergone a round of layoffs just over a month after the landmark merger between Warner Bros. and Paramount.

On Oct. 6, the Skydance-owned Paramount Games Studio was combined with Warner Bros. Games‘ internal video game developers, including Avalanche Software (the makers of “Hogwarts Legacy”), NetherRealm Studios, Rocksteady Studios, TT Games and the WB Games teams in Montreal and Boston.

Additionally, Paramount and Warner Bros.’ games teams were merged with the companies’ respective experiences divisions into one team which will oversee projects based on IP ranging from Paramount’s “Star Trek,” “Mission: Impossible,” “SpongeBob SquarePants,” “South Park,” “Avatar: The Last Airbender” and “The Godfather” to Warner Bros.’ “Harry Potter,” DC Universe, “Mortal Kombat,” “The Matrix,” “Rick and Morty” and “Game of Thrones.”

As part of these changes, Skydance promoted Tony Driscoll (who was named head of Paramount’s newly launched video game studio in June, which itself is a combo of Paramount and Skydance’s gaming assets) to head of the games and experiences unit.

“As part of our ongoing efforts to position Skydance Games for long-term growth and success, we are implementing reorganization and operational shifts across a few areas of our business,” a Skydance spokesperson said in a statement to Variety Monday. “We have stepped back and taken some time to consider where we are investing our efforts and have made the difficult decision to scale down some of our projects. As a result, there are roles impacted. This is not a reflection of the talent, dedication, or creativity of those affected and we are grateful for their contributions. We are committed to approaching the process with transparency, care and respect for those who are leaving the company.”