Skydance Games has laid off an unspecified number of employees following its recent merger, with the company confirming the workforce reductions in a statement to Variety.

The cuts were first reported on LinkedIn, where several employees shared news of their departures. According to PC Gamer, principal environment artist Dana Klaren listed more than 25 affected employees in a post that also confirmed he had been let go. Senior gameplay and game AI programmer Rebecca Vessal separately reported that "most" of her team had been affected.

Lead engineer David Vera, who was not among the employees affected, described the departures on LinkedIn, saying the studio "lost a ton of great talent."

In a statement to Variety, a Skydance representative confirmed that the company was reorganizing parts of its business.

"As part of our ongoing efforts to position Skydance Games for long-term growth and success, we are implementing reorganization and operational shifts across a few areas of our business," the representative said.

The company also confirmed that it had decided to reduce investment in certain projects, resulting in affected employee positions.

"We have stepped back and taken some time to consider where we are investing our efforts and have made the difficult decision to scale down some of our projects. As a result, there are roles impacted. This is not a reflection of the talent, dedication, or creativity of those affected and we are grateful for their contributions. We are committed to approaching the process with transparency, care and respect for those who are leaving the company."

Before the merger, Paramount and Warner Bros. Discovery operated separate gaming divisions. Paramount had Skydance Interactive and Skydance New Media, which were combined into Skydance Games Studio earlier this year.

The merged gaming division announced that it would publish PlatinumGames' upcoming Teenage Mutant Ninja Turtles: The Last Ronin. Meanwhile, Skydance New Media has been working on Marvel 1943: Rise of Hydra, although the game's current development status remains unclear.

Warner Bros. Games also became part of the combined company's gaming operations. Before the merger, the division had struggled to follow up on the 2023 releases Hogwarts Legacy and Mortal Kombat 1.

During Netflix's attempt to acquire Warner Bros. Discovery, the streaming company's co-CEO Gregory Peters described Warner's game studios as being of "relatively minor" value compared with the wider deal. However, Peters also said he was "super excited" about some of the properties included in the acquisition.

The workforce reductions come just over a month after Paramount completed its acquisition of Warner Bros. Discovery, according to the source report.