Oxenfree developer Night School Studio has laid off an undisclosed number of employees.
Game Developer understands multiple workers have been made redundant at the Netflix Games studio, which was acquired by the streamer in 2021 as part of its expansion into game development.
The layoffs purportedly won’t impact the studio’s current project slate.
According to current and former Night School Studio employees, who asked to remain anonymous, the layoffs came as a surprise when they were announced in January and shocked team members.
Netflix declined to comment when approached by Game Developer.
The layoffs, however, come with the company attempting to reorganize its video game business. In October 2024, Netflix closed internal triple-A studio Team Blue less than two years after it broke cover.
Prior to those cuts, Netflix hired former Epic Games EVP of development, Alain Tascan, to lead its video game division. At the time, Tascan said the company was “uniquely positioned to redefine the future of gaming”—but the layoffs that followed indicate the company is unsure what that future actually looks like.
Following the appointment of Tascan, former Netflix Games boss Mike Verdu pivoted internally to become the new VP of GenAI.
Breaking the news on Linkedin, Verdu said the company would leverage generative AI tools to create “mind-blowing new experiences for players.” Like so many other execs who’ve chosen to advocate for the technology, it was a rambling pitch heavy on bombast and light on specifics.
Netflix currently offers access to a number of first and third-party titles through its Netflix Games platform, which is included with Netflix subscriptions at no extra cost.
As it stands, Netflix Games features over 80 mobile titles playable on Android and iOS smart devices—although the company has begun offering access on TV, PC, and Mac as part of a beta experience available in select regions.
It’s unclear how well the service is performing, however, with Netflix often choosing to keep specific engagement and download metrics under wraps.