Don't Nod in safeguard proceedings as union says nearly all non-managerial jobs are cut

Don’t Nod, the French studio behind Life is Strange, has entered safeguard proceedings, a restructuring route meant to head off insolvency. The French game workers union Le Syndicat des Travailleureuses du Jeu Vidéo (STJV) published a statement on October 27 laying out what it says is happening inside the company. The studio has not yet responded to a request for comment. ¹

Every figure below is the union’s, not the company’s.

The union says the planned cuts would remove “nearly all of the non-managerial jobs.” It lists 6 of 6 animators, 3 of 3 character artists, 3 of 3 concept artists, 8 of 10 environment artists, 4 of 8 game designers, 18 of 22 programmers and 3 of 5 QA testers, among other roles. ² The union also alleges that management is picking individuals to keep, which it calls illegal. ²³

The studio’s remaining project, codenamed P14, is the sticking point. The union says management intends to finish it by leaning on outsourcing, with retained managers expected to absorb the work of laid-off staff. The union calls that plan “out-of-touch” and says P14 has not had its scope reduced and still occupies around a hundred people. ¹²

On pay-outs, the union says management told the employee representatives (the CSE) that it can offer only the legal minimum, and that no voluntary departure scheme is on the table. ¹³ It also says the CSE logged six workplace accidents in 2026 and opened an inquiry into what it describes as a serious and imminent danger. ¹

The union says staff were previously shown two scenarios, both involving redundancies, with the worse one ending in liquidation. ²³ It describes the current path as pointing toward the second.

The company’s own filings give the financial backdrop. On September 7, Don’t Nod warned of “material uncertainty” over operating beyond January 31, 2027 without new outside financing. Gross cash fell from $17.9 million (€15.4 million) at the end of 2025 to $9.3 million (€8 million) by the end of July. Total operating revenue for the first half fell 56% to $7.1 million (€6.1 million), and the operating EBITDA loss widened to $5 million (€4.3 million). ⁴

The company said then that its board had approved a transformation plan on September 4 that could cut up to 90 positions in France. CEO Oskar Guilbert called the measures “difficult” and said support measures would be put in place. ⁴ The company also said neither Aphelion nor P14 met the funding criteria it needed, despite expressions of interest. ⁴

What we know: the safeguard filing, the September cash figures and the 90-job ceiling come from the company. The job-by-job tallies, the severance claims and the liquidation warning come from the union. What we do not know is whether the company will confirm those tallies or how many people it will ultimately let go.

The CSE consultation ends November 3. After that, the union says, the regional employment and industry agency has 21 days to rule on the plan, and if it is approved, dismissal letters could go out on November 25. ¹²

Our read: The company has described a plan of up to 90 cuts; the union lists cuts across nearly all non-managerial roles. Those two accounts will have to be reconciled by the agency’s ruling, and the arithmetic on cash runs out in January. The thing to watch is whether a game with its scope intact can ship on outsourced labor.

November 3 is the next date that tells us more.

Footnotes

1. Eurogamer, ““This company has been driven into a wall for years” - Life is Strange studio Don’t Nod faces unrest while teetering on insolvency”. Retrieved October 28, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵

2. Rock Paper Shotgun, “Life is Strange makers Don’t Nod face layoffs and possible insolvency, French workers union STJV state”. Retrieved October 28, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵

3. IGN, “Life Is Strange Developer Don’t Nod Blasted by Union Employees Over ‘Illegal’ Management Practices as Possible Layoffs Loom”. Retrieved October 28, 2026. ↩ ↩² ↩³

4. GamesIndustry.biz, “Don’t Nod warns it may not have enough funding to operate beyond January 2027”. Retrieved October 28, 2026. ↩ ↩² ↩³