Naughty Dog Hit With Layoffs Amid Last of Us Multiplayer Troubles

Last of Us Multiplayer Put On Hold!

The gaming industry has seen many layoffs this year. Not too long ago, Embracer Group shut down Volition Games, and Epic Games laid off over 800 employees. It appears Naughty Dog has faced similar circumstances recently.

The studio behind Uncharted and The Last of Us has been a powerhouse among PlayStation’s first-party teams for many years. However, it has struggled with its latest multiplayer project.

Following the lack of updates about The Last of Us Multiplayer, Naughty Dog is currently laying off contract developers.

Why it matters: PlayStation has struggled with the transition to live service development. The current economic conditions have also made it extremely hard for studios to retain talented developers.


This information comes from Kotatu, and their sources have suggested that at least 25 employees have been laid off by Naughty Dog. However, full-time staff remains unaffected.

The departments impacted by the layoffs include art and production. Despite the troubled economy around the world, the report suggests Naughty Dog has not offered a severance package to the affected developers.

As seen above, several developers have already confirmed their departure from Naughty Dog through LinkedIn. With their journeys at the studio coming to an end in October, they have begun to look for opportunities elsewhere.

Furthermore, the report points to a concerning future for The Last of Us Multiplayer. While the project was already known to be facing several hurdles, a source suggests that it has been put on hold for a while.

Naughty Dog

Fortunately, the game has not been canceled. Bungie is expected to evaluate a new direction for The Last of Us Multiplayer, one that will help Naughty Dog release a sustainable game in a competitive live service market.

Apart from Naughty Dog, developers like Creative Assembly and Ascendant Studios have been hit with layoffs recently. While the gaming industry continues to thrive with frequent high-quality releases in 2023, such layoffs highlight the grim reality and risky nature of modern AAA game development.

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