Smite Creator, Hi-Rez Studios, Experiences Job Cuts

Hi-Rez Studios, the creator behind Smite, has recently implemented layoffs across its various subsidiaries, including Alacrity Arthouse, Evil Mojo Games, and Red Beard Games. The specific number of job cuts has not been disclosed.

The gaming industry has seen tens of thousands of job losses in recent years as companies restructure to cut costs amid an ongoing economic downturn. Major developers like Bungie, a first-party Sony studio, and smaller studios such as Surgent Studios, known for Tales of Kenzera: Zau, have been affected. Ubisoft has also faced repeated layoffs during this tumultuous time. In this latest development, Hi-Rez Studios joins the ranks of companies grappling with the uncertainties of the industry.

In a recent Twitter post, CEO Stewart Chisam announced that an undisclosed number of employees would be let go, affecting team members from Hi-Rez's subsidiaries, including Evil Mojo Games, Titan Forge Games, and G&A. Chisam described these changes as "difficult but necessary," aimed at ensuring a "long sustainable future" for the upcoming MOBA game, Smite 2.

Chisam emphasized that the layoffs were not directed at any specific department, impacting various roles across marketing, publishing, and development. The affected employees primarily belong to the “game team,” responsible for cosmetic skins and system features.

Hi-Rez Studios Joins Industry Layoff Trend

With this announcement, Hi-Rez Studios becomes another company in the gaming sector to implement layoffs this year, alongside Insomniac Games, Ubisoft Toronto, Gearbox, and others. Taking accountability, Chisam described the decision as “heartbreaking,” attributing it to “a failure in my leadership” rather than any shortcomings of the employees affected.

Elaborating on the reasons behind the layoffs, Chisam stated that Hi-Rez intends to concentrate most of its resources on Smite 2, which is currently in early access. Small teams will continue to provide light updates for the studio's other titles, including Smite and Paladins.

Chisam noted that the team working on Smite 2 is "larger than the Smite 1 team was throughout most of its lifecycle." He expressed the studio's ambition to deliver the "best possible game experience" for Smite 2, with hopes for the game’s longevity extending well into the 2030s. The developers are also focused on improving the migration process for Smite 1 Gods to Smite 2 while aiming to meet "player expectations."

As another studio announces layoffs, the gaming industry appears to be navigating one of its most challenging phases in recent memory. This trend, coupled with the rising number of big-budget titles like Star Wars: Outlaws and Concord that have failed to meet expectations, makes the landscape even more difficult for studios. At this point, it remains uncertain when the wave of layoffs will begin to subside.