Video game studios Supermassive Games and Gravity Well announce major layoffs

The video game industry faces further instability as two studios, Supermassive Games and Gravity Well, announce significant workforce reductions.

Supermassive Games, the Guildford-based developer known for ‘Until Dawn’, has laid off more than 70 employees across various disciplines, including developers, artists, producers, and QA staff. The company stated these measures are necessary to ensure long-term sustainability following the launch of ‘Directive 8020’. This follows a previous round of over 30 layoffs in July 2025 and the resignation of CEO Robert Henrysson in June 2026.

Separately, independent AAA studio Gravity Well has laid off the majority of its team, including more than 40 developers. The studio reported that the decision follows a loss of funding during the summer and a failure to secure a new partner. Leadership expressed that the cuts were a direct result of the funding situation rather than staff performance.