Piranha Games hit by new layoffs amid ongoing EG7 restructuring
Summary
Piranha Games, developer of MechWarrior 5: Clans, has reportedly conducted a new round of layoffs
Former employees from writing, FX/VFX, environment and technical art, level design, and software engineering were affected
A former worker cited "economic restructuring" as the stated reason for the cuts
This follows a January 2024 round that cut 38 staff after MechWarrior 5: Clans missed sales targets
"The game failed to reach new audiences and expand its core audience as expected and therefore has not met the necessary sales targets"
01
New cuts follow prior wave of post-launch downsizing
Piranha Games has reportedly conducted a second round of layoffs, confirmed via LinkedIn posts from former staff
Roles affected span writing, FX/VFX, environment and technical art, level design, and software engineering
A former employee cited "economic restructuring" as the reason, with no official count disclosed
GamesIndustry.biz has reached out to Piranha Games for confirmation
02
MechWarrior 5: Clans underperformance drove prior restructuring
In January 2024, EG7 cut 38 employees at Piranha Games following the commercial disappointment of MechWarrior 5: Clans
The game was positioned to grow beyond its core audience but failed to meet sales targets
EG7 simultaneously shut down Toadman Interactive, citing inability to secure new work-for-hire contracts
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EG7's acquisition and studio history context
EG7 was established in January 2020 through the merger of Toadman, publisher Sold Out, and creative agency Petrol
Piranha Games was acquired later that year for $24.1 million
Toadman Interactive, also under EG7, has now been shut down - removing a second studio from the group's portfolio
04
Outlook - further consolidation likely under EG7
With Toadman gone and Piranha facing repeated cuts, EG7 appears to be significantly narrowing its studio footprint
The trajectory suggests continued pressure on remaining teams unless new commercial opportunities emerge
No new projects or pipeline announcements from Piranha Games have been confirmed
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