Vancouver’s Phoenix Labs Lays Off Majority of Staff Amid Industry Challenges & Market Shifts

​In January 2025, Vancouver-based game developer Phoenix Labs, known for titles like Dauntless and Fae Farm, announced significant layoffs, releasing the majority of its approximately 90 employees. ​

This decision follows a series of workforce reductions at the studio. In May 2024, over 100 employees were let go, accompanied by the cancellation of multiple in-development projects. These measures were reportedly influenced by Forte Labs, a blockchain gaming company that had acquired Phoenix Labs in 2023 under undisclosed terms.

The layoffs at Phoenix Labs reflect broader challenges within Canada's video game industry. A recent report indicated a 9% decline in the number of active video game companies, dropping from 899 in 2021 to 821 in 2023-24. This contraction primarily affected smaller independent studios with fewer than 25 employees. Despite this, the industry contributed approximately $5.1 billion to Canada's GDP in 2024, marking a 3% increase since 2021.

Phoenix Labs' recent layoffs underscore the volatility within the gaming sector, highlighting the challenges faced by studios amid shifting market dynamics and ownership changes.​

Have you been laid off by Phoenix Labs Canada? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

Thomas Wilde’s original article, “Vancouver game studio Phoenix Labs lays off ‘majority’ of employees” was published in Geek Wire News on January 27, 2025. Read the Full Geek Wire News story.