Tiny Tina's Wonderlands and Diablo 4 support studio lays off 139 out of 200 workers as Embracer Group fallout continues

Lost Boys Interactive, an Embracer-owned support studio for Diablo 4, Tiny Tina’s Wonderlands, and PUBG, has been hit with another round of layoffs. The total number of affected employees is 139, and according to the studio’s website, there were around 200 employees before the layoffs.

The remote first studio shared the news on LinkedIn, saying the workforce reduction has impacted employees across “several” states in the US. A notice filed with the Wisconsin state government confirms the number of impacted employees.

“Today is a challenging day for Lost Boys Interactive as we face the difficult decision to reduce our workforce,” said Lost Boys CEO Shaun Nivens. “We recognize the impact of this decision on our team members, who have contributed greatly to our success. Decisions involving staff reductions are never made lightly, and this action was taken only after considering all other options. We are committed to supporting them in every way we can during this transition.”

This latest workforce reduction comes only eight months after the previous one in January, which saw a “sizable portion” of staff made redundant. Embracer has been at the center of the ongoing layoff crisis following the company’s “restructuring” in 2023 that resulted from a failed $2 billion deal with Saudi Arabia. Earlier this year, Embracer CEO Lars Wingefors admitted that, after some 1,400 cut jobs, “I deserve a lot of criticism”.

Lost Boys Interactive was founded in 2017 and was acquired by Gearbox in 2022, at which point it fell under the Embracer umbrella.

Tomb Raider publisher says “things are progressing” with the next Lara Croft game and that Crystal Dynamics is “fairly sheltered” from the layoffs wracking Embracer.

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