Third Straight Year Of Layoffs Hits Until Dawn, Little Nightmares 3 Dev Supermassive

Supermassive Games has announced job cuts for “up to 75” people–marking the third straight year of significant layoffs at the studio. This latest round of reductions comes almost three months after the release of Directive 8020, the newest entry in The Dark Pictures horror anthology.

In a statement on X, Supermassive noted the firings were “a necessary step to help ensure the sustainability of the company.” That’s not the first time the Until Dawn developer has cited “sustainability” after layoffs, either. In 2024, there were reportedly 90 employees let go, with up to 150 positions at risk. Supermassive pointed to “continued sustainability of the company” in regard to those cuts. Then, in 2025, there were around 36 people laid off at Supermassive.

Nordisk Games acquired Supermassive in 2022 and also owns Just Cause developer Avalanche Studios as well as Metroid Dread developer MercurySteam. In the past year, Avalanche has closed down its Liverpool location, and MercurySteam has enacted a round of job cuts, too, according to GameDeveloper.

Supermassive is probably best known for 2015’s Until Dawn, though it wasn’t behind the Until Dawn remake. In fact, Sony revealed Until Dawn 2 back in June, developed by Firesprite. Meanwhile, Supermassive took over development duties for Little Nightmares 3, after Tarsier made the first two games in that series.