Virtuos, the Singapore-headquartered game development firm renowned for its work on high-profile remasters and support roles for major franchises, is reportedly undergoing significant layoffs. According to a report by French journalist Gauthier Andres, known by the alias Origami, approximately 300 positions—about seven percent of the company’s global workforce—are at risk. The cuts are affecting staff across Asia, North America, and Europe, including three of the company’s offices in France.
Sources suggest that China, where Virtuos maintains some of its largest operations, will bear the brunt of the layoffs, with around 200 positions affected. However, other regions, including key European hubs, are not spared. The European branches, notably those involved in the recently completed remaster of The Elder Scrolls IV: Oblivion, are reportedly impacted. These studios had been critical to Virtuos’ recent successes, making the downsizing particularly concerning for staff involved in flagship projects.
The move follows a strategic shift within Virtuos as the company seeks to reposition itself in the competitive landscape of the video game industry. Management has reportedly told staff that the restructuring is intended to improve the studio’s “competitiveness.” Rather than focusing on lighter remakes and support roles, Virtuos appears set on pursuing larger, franchise-defining projects akin to the ambitions of studios like Bluepoint Games. This shift in focus comes amid development efforts on major titles such as Metal Gear Solid Δ: Snake Eater and the Oblivion Remastered, both of which were seen as pivotal to Virtuos’ evolving business strategy.
However, this strategic pivot seems to have come at a cost. Sources claim that during the development of Oblivion Remastered, Virtuos operated with a policy of over-delivering on quality despite working within tight budget constraints. The project, reportedly contracted without royalties or bonus incentives tied to its success, pushed development teams to their limits. By February this year, near the project’s completion, the company froze salary increases and reduced group-wide bonuses—a move that sparked questions among employees about the possibility of future layoffs. Management reportedly dismissed such concerns at the time.
In the wake of the announcement, protests have emerged, particularly at Virtuos Lyon, where staff are reportedly striking. The protests aim to oppose the layoffs and protect the operational integrity of the Lyon office, which is said to be undergoing a leadership merger with other French studios. Employees have expressed concern that this centralization might further erode local management’s influence and weaken the office’s role within Virtuos’ global operations.
Another growing point of tension relates to the company’s gradual introduction of generative AI tools. Witnesses within the company report that over the past year, Virtuos has moved from limited presentations on AI to implementing basic mandatory training programs for employees. While the long-term impact of this policy remains to be seen, it has added to a climate of uncertainty among staff.
Behind closed doors, many employees reportedly feel that the trust between Virtuos’ leadership and its workforce has been damaged. With the company navigating a major strategic overhaul while introducing contentious new technologies and workforce reductions, a sense of fatigue and disenchantment is reportedly growing within its ranks.
Virtuos, founded in 2004 and known for its expertise in art production, game development, and co-development partnerships, has worked on projects ranging from Final Fantasy remasters to high-profile franchises like Assassin’s Creed and Call of Duty. While its recent expansion into headline projects like Metal Gear Solid Δ suggests ambitions beyond support roles, the current turmoil raises questions about how the company will balance its strategic goals with the wellbeing and trust of its employees.
As of now, Virtuos has not issued an official public statement regarding the layoffs.
