Romero Games makes layoffs after Microsoft cancels project funding

Irish studio Romero Games has seemingly laid off a number of employees after suddenly losing project funding.

Notably, a number of Romero Games workers claim the cutbacks at Romero are a direct result of Microsoft’s latest layoff spree—which saw the company make significant redundancies across its video game division.

Romero Games detailed the situation in a post on Bluesky but didn’t name Microsoft directly.

“We have some difficult news to share. Last night, we learned that our publisher has cancelled funding for our game along with several other unannounced projects at other studios,” reads the post.

“This was a strategic decision made at a high level within the publisher, well above our visibility or control. We deeply wish there had been something, anything, we could have done to prevent this outcome.”

Romero Games working to support employees after publisher pulls funding

Studio CEO Brenda Romero explained the company is currently evaluating next steps and working to support its team. “Many of us have worked together for more than a decade, some for over 20 years,” she added. “It’s an extremely difficult day.”

It’s currently unclear how many people have been impacted by the cuts. According to job listings posted online, Romero Games had been working on a brand new shooter featuring an original IP. 

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A number of employees impacted by the layoffs shared the news on Linkedin and laid the blame firmly at Microsoft’s door.

“Unfortunately, I was affected by the recent layoffs from Microsoft and have lost my role as a material and texture artist at Romero Games, a studio full of incredibly kind, talented, and inspiring people,” reads one post. 

“With a heavy heart, my time at Romero Games has come to an end as a result of our publisher’s layoffs,” reads another, this time from a producer and project manager. 

One environment artist claimed Romero Games is “closing down,” but it’s unclear whether that statement is accurate at the time of writing. Meanwhile, another environment artist stated their time at the studio ended “due to the recent layoffs that happened within Microsoft.”

Game Developer reached out to Romero Games for comment and was referred back to the public statement shared online. We have also reached out to Microsoft for more information on the status of the company’s publishing operations.