Eidos Montreal cut 124 jobs as Embracer continues studio downsizing
Summary
Eidos Montreal laid off 124 employees, citing "changing project needs" across production and support teams
Studio head David Anfossi departed after 19 years, with a leadership transition plan underway
The studio has now shed 296+ roles since January 2024 under Embracer's ongoing cost reduction program
"Today is a difficult day for our studio and reflects the need to adapt and concentrate efforts where Eidos-Montréal can be most effective"
01
Layoff timeline - three rounds of cuts in under 18 months
97 roles eliminated in January 2024 as Embracer launched a broad cost reduction program
75 employees laid off in March 2025 as a studio mandate came to an end
124 employees cut in March 2026, the latest and largest round, spanning production and support teams
Total headcount reduction across the three rounds exceeds 296 positions
02
Studio leadership change after nearly two decades
David Anfossi joined Eidos Montreal in April 2007 as a producer on Deus Ex: Human Revolution
He was promoted to executive producer in 2011 and named head of studio in 2013
His departure is framed as a mutual parting, with a formal leadership transition plan now in progress
No successor has been named yet; updates are expected once new leadership is finalized
03
Studio identity shifts from developer to co-development partner
Eidos Montreal's last self-developed and released title was Marvel's Guardians of the Galaxy in 2021
Most internal projects were reported cancelled following a December 2025 round of cuts
The studio's current focus is co-development work, including Microsoft's Grounded 2 and Fable
The shift marks a fundamental change in the studio's role within Embracer's portfolio
04
Embracer's restructuring context - fallout from a failed $2B deal
Embracer acquired Eidos Montreal, Crystal Dynamics, and Square Enix Montreal from Square Enix in 2022 for $300 million
A $2 billion investment from Saudi Arabia's Savvy Games Group failed to materialize in 2023
Embracer launched a sweeping restructuring program that resulted in thousands of layoffs and multiple studio closures
Eidos Montreal has been one of the most visibly and repeatedly impacted studios in the group
05
What's next for Eidos Montreal
The studio appears to be stabilizing around a leaner co-development model rather than original IP development
New leadership will shape the studio's direction once the transition process is complete
Its contribution to high-profile Microsoft titles like Fable and Grounded 2 may define its near-term identity
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