Layoffs at Night School Studio, Developers of Oxenfree

Overview of Recent Layoffs at Night School Studio

Night School Studio, the developer of the acclaimed title Oxenfree, has recently experienced layoffs under Netflix’s management, with the exact number of affected employees remaining undisclosed.
Reports indicate that the layoffs were initially communicated in January 2025, catching staff off guard given the studio’s previous stability.
This situation at Night School Studio is part of a larger trend of job cuts impacting gaming companies worldwide, including notable names like Crytek.

Netflix’s recent decision to reduce workforce at Night School Studio, known for its engaging narrative-driven games, represents a shift in the streaming giant’s gaming strategy. Originally established in 2014 by Sean Krankel and Adam Hines, Night School Studio gained fame for titles such as Afterparty and Next Stop Nowhere, culminating in the release of Oxenfree 2: Lost Signals in 2023, further enhancing its reputation within the gaming community.

Oxenfree, the studio’s debut release in 2016, allowed players to step into the shoes of teenager Alex, who navigates a mysterious island filled with supernatural phenomena. Unlike traditional narrative experiences, Oxenfree is known for its innovative approach, opting for a dialogue system reminiscent of coming-of-age storytelling and eschewing cutscenes. This unique style earned the game widespread acclaim, positioning it as a standout title in the adventure genre.

As reported by Game Developer, the layoffs were part of a restructuring effort within Netflix Games following the acquisition of Night School Studio in 2021. Employees affected by the layoffs have chosen to remain anonymous, expressing their shock at the sudden announcement made earlier this year, which, according to insiders, would not hinder ongoing projects at the studio.

Impact of Layoffs on the Video Game Industry

Despite an ambitious entry into the gaming sector, Netflix Games has faced challenges, including the cancellation of six upcoming titles, such as Don’t Starve Together and Tales of the Shire: A Lord of the Rings Game. The studio opted not to provide comments regarding the recent layoffs when approached by reporters from Game Developer. This decision appears to align with Netflix’s broader strategy to streamline its gaming business, particularly following the closure of Team Blue, a triple-A studio, in October 2024.

In a notable shift within the organization, Alain Tascan, formerly of Epic Games, joined Netflix to spearhead future gaming initiatives. Tascan previously remarked on the company’s potential to “redefine the future of gaming.”His hiring reflects a commitment to evolving Netflix’s approach, especially amid leadership changes that see Mike Verdu transitioning to a focus on generative AI within Netflix’s game development plans.

The layoffs at Night School Studio are emblematic of a worrying trend within the gaming industry, where other studios have also faced significant workforce reductions. Notable recent layoffs include those at Crytek, the developer of the Crysis series, as well as 10:10 Games and the team behind Smite at Hi-Rez Studios. This environment highlights the challenges facing developers in a rapidly changing industry landscape.

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