In a recent development, Netflix has initiated layoffs at Night School Studio, a move that has caught many employees off guard. According to reports from Game Developer, these reductions in workforce will not affect the studio’s current content lineup, allowing ongoing projects to proceed as planned.
Strategic Shifts in Netflix’s Gaming Division
The announcement of these layoffs dates back to January, creating an atmosphere of uncertainty among staff members. Night School Studio, which Netflix acquired in 2021 as part of its strategic expansion into the gaming sector, was once celebrated for its unique creative vision. Co-founder Sean Krankel expressed his excitement at the time of the acquisition, noting the honor of being the first game studio to join the Netflix family. He remarked on the opportunity to maintain their creative culture while enjoying the support of the world’s largest entertainment platform.
However, the recent layoffs appear to be indicative of a broader shift in Netflix’s gaming strategy. This transition has also seen the closure of its triple-A Blue studio, signaling a potential pivot in focus. Mike Verdu, who previously led the gaming division, has transitioned to a new role overseeing generative AI, reflecting the company’s evolving priorities. In a bid to steer its gaming efforts in a new direction, Netflix has appointed industry veteran Alain Tascan to lead its gaming arm moving forward.
