Don't Nod faces financial crisis and potential job cuts

Video game developer Don't Nod has issued a warning regarding significant uncertainty about its ability to continue operating beyond January 31, 2027. The company's first-half 2026 financial report showed operating income fell 56 percent year-over-year to €6.1 million, while revenue decreased 14 percent to the same amount.

To stabilize operations, the studio is undergoing a restructuring process that includes a potential reduction of up to 90 employees in France. The company plans to consolidate production into a single-site operation in France, focusing on a single production line to ensure resources are dedicated to one project at a time rather than being spread across multiple developments.

Don't Nod attributed its financial difficulties to systemic pressures within the video game industry, specifically noting the difficulty of securing financing for mid-sized developers. While a licensed project with Netflix has provided some support, the company stated that continued operations depend on securing new external financing to cover business needs and project development.