Behaviour Interactive layoffs signal structural retreat from mobile work-for-hire
Summary
Behaviour Interactive cut external development roles on April 22, 2026, citing declining mobile and casual project demand.
The layoffs follow acquisition of The Fun Pimps less than a month prior, accelerating a pivot from client work to owned IP.
For outsourcing studios, losing a client that served Nintendo, EA, and Tencent shrinks available pipeline further.
"Demand for mobile and casual external development projects has declined... we do not foresee comparable opportunities in the near term."
01
External dev roles cut as client pipeline dries up
Behaviour laid off an undisclosed number of staff from its external development division.
That division historically served NetEase, Disney, Nintendo, EA, and Tencent.
Employees disclosed cuts on LinkedIn before the studio issued a formal statement.
Behaviour employs roughly 1,200 people across Montreal, Vancouver, Toronto, Rotterdam, and the UK.
02
Owned IP replaces client services as the growth engine
Behaviour acquired The Fun Pimps (7 Days to Die) weeks earlier to build a "high-quality horror portfolio."
In 2024, Behaviour shut subsidiary Midwinter Entertainment, pruning another non-core unit.
Dead by Daylight has reached over 70 million players since 2016, anchoring the IP-first strategy.
Pattern is consistent: close subsidiaries, cut work-for-hire, acquire IP-rich studios.
03
Mobile work-for-hire contraction is hitting established studios industry-wide
Iron Galaxy and Take-Two also cut staff in April 2026; Epic laid off over 1,000 in March 2026.
Studios dependent on mobile and casual co-development contracts face direct revenue exposure.
Behaviour's exit removes a major external dev provider from the market, compressing available pipeline for publishers still outsourcing.
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