Yooka-Laylee Studio Playtonic Announces “Heartbreaking” Layoffs Amidst Industry Turmoil

The vibrant world of indie game development has been hit with another somber note, as Playtonic, the studio beloved for bringing us the Yooka-Laylee series, has confirmed a round of layoffs. Citing the “knock-on effects” of recent, sweeping changes across the games industry, the UK-based developer announced the difficult decision to part ways with several team members.
In a heartfelt statement shared on social media, Playtonic expressed the painful reality many studios are currently facing. “We’ve all seen in recent years how the games industry has been changing, resulting in studio after studio finding themselves in situations where to continue to exist, they must make painful decisions – decisions that impact the lives of so many individual talented developers,” the studio conveyed. They emphasized that this was a last resort, taken “after exploring every possible avenue.”
The statement continued, underscoring the human cost: “This isn’t a reflection of anyone’s talent or dedication, the people leaving have poured so much heart, creativity, and care into everything we do. They’ve helped shape our studio, our games, and our culture, and we’re incredibly proud of what we’ve built together.”
The news casts a shadow of uncertainty, particularly regarding Playtonic’s upcoming project, Yooka-Replaylee, a remaster of their original 3D platformer, slated for release later this year. While the studio hasn’t officially confirmed if the remaster’s development or release timeline will be affected, the layoffs have reportedly impacted crucial departments.
According to a LinkedIn post from Playtonic’s brand manager, Anni Valkama, the redundancies have touched the production, art, game design, narrative design, and UI/UX design teams. This breadth of impact highlights the challenging decisions the studio faced.
Echoing the sentiment, Kevin Bayliss, a veteran artist at Playtonic known for his iconic work on Rare’s Donkey Kong Country series, shared his thoughts: “I love working in the games industry, but it’s been a sad couple of weeks for us at Playtonic Ltd since we’ve lost some great talent and friends due to redundancies. I feel extremely lucky to still have a position doing what I enjoy, but also very lucky to have had the pleasure of meeting and working with the lovely people that we’ve had to say goodbye to.”
Playtonic, formed by former Rare staffers, first captured the hearts of 90s platformer fans with Yooka-Laylee in 2017, a spiritual successor to the Banjo-Kazooie games. This was followed by the critically acclaimed 2D side-scroller, Yooka-Laylee and the Impossible Lair, in 2019. In 2021, the studio expanded its horizons by launching its publishing arm, Playtonic Friends, to support other indie developers.
The upcoming Yooka-Replaylee aims to revitalize the original title with revised graphics, overhauled animations, and new challenges for PS5, Xbox Series X/S, and PC, with a Nintendo logo in its trailer hinting at a release on the rumored Switch 2.
Playtonic’s statement concluded with a reflection on the current industry climate: “This isn’t simply a difficult moment, it’s a period of profound change in how games are created and financed. The landscape is shifting, and with it, so must we.”
As fans await further news on Yooka-Replaylee and the studio’s future, the industry watches on, hopeful that Playtonic can navigate these turbulent times and continue to create the charming experiences they’re known for.