Elite Dangerous studio Frontier Developments announces layoffs 'following a period of disappointing financial performance'

Elite Dangerous screenshot
(Image credit: Frontier)

The game industry annus horribilis continued today with an announcement from Elite Dangerous studio Frontier Developments, which said that it is implementing a hiring freeze, cutting costs, and laying off an unknown number of employees.

"During 2023, Frontier refined its strategy to refocus on its core strengths following a period of disappointing financial performance and more challenging industry conditions," Frontier said. "The Organisational Review announced today will reshape Frontier to deliver on that updated strategic plan more efficiently, return the Company to profit, and create a sustainable foundation for the future.

"The review will deliver enhancements to Frontier's leadership and structure, drive efficiencies across the Company and achieve a reduction in annual operating costs of up to 20%. The cost reductions will be achieved through a recruitment freeze, spending cuts and, unfortunately, redundancies, subject to consultation."

In the UK, employees being laid off are legally entitled to a "consultation" with their employers about why they're being laid off, whether there are any alternatives to being let go, and what sort of support will be offered, such as retraining, once their employment is terminated. Process specifics vary depending on the size of the company in question and the number of people being let go, and while it generally doesn't protect employees from being laid off, the putative overall goal is to ensure clarity, avoid unpleasant surprises, and in theory at least, make the landing as soft as possible for employees put out of work.

In its 2023 annual report, Frontier said that its previous fiscal year, which ended on May 31, was "challenging," due to "a lower-than-expected sales contribution from F1 Manager 2022, the general sales underperformance across the portfolio during the Christmas holiday period, and the poorer than expected performance of the Foundry games." Foundry was Frontier's third-party publishing division, which was shut down in June following "disappointing" financial performance: Frontier said at the time that Foundry "has not delivered Frontier's expectations of a positive return on investment within the first year of each title."

2023 has truly been a miserable year for game developers, as layoffs have swept across the industry at a deeply upsetting pace and scale. Frontier Developments is the latest in a long line of game developers that have cut staff in 2023, following Epic Games, Electronic Arts, Activision, CD Projekt, Take-Two, BioWare, Firaxis, and numerous others. Large tech companies including Meta, Microsoft, Amazon, Unity, and Google have also cut their workforces dramatically in their never-ending quest for profits and growth.

The organizational review announced today is expected to conclude in early 2024. Frontier didn't say how many employees will be put out of work as a result, but I've reached out for more information and will update if I receive a reply.

Andy Chalk
US News Lead

Andy has been gaming on PCs from the very beginning, starting as a youngster with text adventures and primitive action games on a cassette-based TRS80. From there he graduated to the glory days of Sierra Online adventures and Microprose sims, ran a local BBS, learned how to build PCs, and developed a longstanding love of RPGs, immersive sims, and shooters. He began writing videogame news in 2007 for The Escapist and somehow managed to avoid getting fired until 2014, when he joined the storied ranks of PC Gamer. He covers all aspects of the industry, from new game announcements and patch notes to legal disputes, Twitch beefs, esports, and Henry Cavill. Lots of Henry Cavill.

Read more
Mechwarrior 5: Clans
Piranha Games will lay off employees after Mechwarrior 5: Clans 'performed below projections'
rumbleverse
Iron Galaxy lays off 66 employees in a 'last resort' effort to 'enable our long term survival'
BRAZIL - 2021/10/12: In this photo illustration the Unity Technologies logo seen displayed on a smartphone on the background of a keyboard. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
2 years into Unity's long downward spiral, even more employees are being laid off as CEO says it's still 'stretched across too many products'
Callisto Protocol
The Callisto Protocol studio lays off more employees, but 'remains operational'
Dauntless - Heroes pose in fur trimmed armor
Dauntless developer Phoenix Labs lays off 'the majority of the studio' after a year of turmoil
Citizens talking about life in Frostpunk 2
Frostpunk 2 developer 11 bit studios cancels unannounced project and lays off employees
Latest in Gaming Industry
Aloy - Horizon
'I feel worried about this art form:' Unsurprisingly, the real Aloy from Horizon isn't a fan of AI Aloy
Geralt, two swords on his back, in the wilderness
2011 was an amazing comeback year for PC gaming
Assassin's Creed meets PUBG
Ubisoft is reportedly talking to Tencent about creating a new business entity to manage Assassin's Creed and other big games
Possibility Space concept art.
Possibility Space owners sue NetEase for $900 million over allegations it spread 'false and defamatory rumors' of fraud at the studio that ultimately forced it to close
Valve soldier man on a pc.
2024 was Steam's 'best year ever' of users buying newly released games—but I wouldn't celebrate the end of the forever game era just yet
Money money money.
Valve tracked 1.7 million Steam users who joined in 2023 to see if they stuck around—they did, and they spent $93 million
Latest in News
Mechs fight on the outside of a spaceship
MechWarrior 5: Clans is getting DLC with playable Elementals and a fight on the outside of a spaceship
Aloy - Horizon
'I feel worried about this art form:' Unsurprisingly, the real Aloy from Horizon isn't a fan of AI Aloy
Crying laughing emoji with disturbing realistic elements for REPO
REPO's first update will add a new map and a 'duck bucket' so we can finally give that pesky quacker a time out
Man facing camera
The Day Before studio reportedly sues Russian website for calling infamous disaster-game a 'scam'
Will Poulter holding a CD ROM
'What are most games about? Killing': Black Mirror Season 7 includes a follow-up to 2018 interactive film Bandersnatch
Casper Van Dien in Starship Troopers
Sony, which is making a Helldivers 2 movie, is also making a new Starship Troopers movie, but it's not based on the Starship Troopers movie we already have