PlayStation Studio Media Molecule Lays off 15% of Staff

Expert Verified By

Another PlayStation Studio Hit With Layoffs!

Layoffs are becoming more and more of a norm in the gaming industry. Developers are going through a challenging period as a result of major companies like PlayStation, CDPR, and Epic Games laying off a substantial number of their employees.

Following recent layoffs at Naughty Dog, the developer behind Dreams and the Little Big Planet IP, Media Molecule, is facing layoffs, with nearly 15% of its entire workforce being cut down.

Why it matters: This is far from an isolated incident, highlighting the dire state of the industry currently. Such incidents could also lead to more unionization, with developers looking for better job security.

Little Big Planet 3

The developer revealed this unfortunate news in an internal meeting today, according to Sports Illustrated’s GLHF. Media Molecule intends to lay off 20 of its 135 employees, which is a large number for a developer of this size.

Last month, the studio released its final update for Dreams. As a game aiming to empower creatives with a platform for content creation, Dreams may have failed to live up to PlayStation’s expectations.

Elsewhere, studios like PlayStation Visual Arts have laid off developers this year. Other developers like Naughty Dog have also struggled to find their footing with the standalone multiplayer project for The Last of Us.

This information comes after several other PlayStation developers confirmed they were laid off a few days ago. Therefore, PlayStation appears to have taken a significant hit from the current economic turmoil, like other studios around the world.

Dreams

Nonetheless, this is an unfortunate situation for everyone involved. We wish the people affected the best of luck in their future pursuits and hope that these layoffs don’t leave a lasting impact on them.

As for the future of Media Molecule, the studio remains afloat. Despite being limited to Dreams in recent years, the team is working on a new project, but little is known about this game at the moment.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

The Last of Us 2 Multiplayer Mod Continues To Make Incredible Progress; 4v4 Now Playable

A mod that makes multiplayer playable in The Last of Us Part 2 has reached a new milestone, allowing for 4v4 matches.

Resident Evil Veronica Hits 2 Million Wishlists One Year Before Launch

Resident Evil Veronica is shaping up to be quite the hit already, accumulating over 2 million wishlists just months after its first reveal.

Gaming Hardware Costs Surged 16% In The US In Just First Half Of 2026

A notable analyst reveals that the average price of gaming hardware has grown by 16% since January 2026 began in the US alone.

Marvel’s Wolverine Earns Mature Rating For Violence And Gore

The upcoming Marvel's Wolverine is officially rated for a much harsher tone than most of Insomniac Games' other titles.

PS4 Fan-Favorite Driveclub Now Runs At 8K Through Emulation

Driveclub has found new life on PC, with the PS4 rcing exclusive now playable at extreme resolutions through emulation.