Bend Studio, the Oregon-based developer behind the cult-favorite title Days Gone, has confirmed significant layoffs affecting approximately 30% of its workforce. This major setback follows the cancellation of an unannounced live service game project earlier this year by Sony Interactive Entertainment.
According to Bloomberg’s Jason Schreier, about 40 employees were laid off, marking a critical transition period for one of Sony’s most recognized first-party developers.
📉 Layoffs at Bend Studio Confirmed
Bend Studio released a statement on its official social media account on June 11, 2025, saying:
“Today, we said goodbye to some incredibly talented teammates as we transition to our next project. We’re deeply thankful for their contributions as they’ve shaped who we are, and their impact will always be part of our story.”
While the studio did not confirm exact numbers, reports suggest that the job cuts represent nearly one-third of Bend Studio’s staff.
🕹 Why the Layoffs? Sony’s Retreat From Live Service Strategy
The layoffs follow Sony’s cancellation of two major live service games—one at Bend Studio and another at Bluepoint Games, rumored to be a God of War spinoff. These cancellations are part of a broader shift in Sony’s strategy, pulling back from its aggressive push into live service gaming.
A Sony spokesperson had previously confirmed:
“Bend and Bluepoint are highly accomplished teams who are valued members of the PlayStation Studios family, and we are working closely with each studio to determine their next projects.”
Live service games, once considered the future of gaming revenue models, are now being reconsidered after several industry-wide failures and consumer backlash. Sony’s U-turn is impacting developers, and Bend Studio appears to be among the hardest hit.
🎮 Bend Studio’s Recent History and Future Prospects
Bend Studio gained widespread recognition with the release of Days Gone in 2019, a post-apocalyptic action-adventure game that garnered a loyal fanbase despite mixed critical reception. A remastered version of Days Gone launched on PS5 in April 2025, featuring:
- Enhanced 4K visuals
- DualSense haptic feedback
- New accessibility settings
- Improved frame rates
While Days Gone 2 was reportedly pitched but rejected by Sony in the past, fans continue to demand a sequel. For now, Bend Studio says it is “transitioning to its next project”, though no official announcements have been made.
📊 Industry-Wide Trend: Layoffs in Gaming 2025
Unfortunately, Bend Studio isn’t alone. 2025 has seen a wave of layoffs across major gaming companies, including Microsoft, EA, Ubisoft, and more. The industry’s shift toward profitability over growth has forced companies to scale back ambitious projects and cut down on development teams.
Other major studio layoffs in 2025 include:
- 343 Industries – Halo Infinite support team downsized
- Ubisoft Montreal – Cancellations of unannounced mobile titles
- Electronic Arts – Downsizing of Battlefield live support teams
Experts believe the industry is correcting an overextension caused by the pandemic-era gaming boom, where demand surged and companies overhired.
🔮 What’s Next for Bend Studio?
While the cancellation of the live service title is a setback, Bend Studio’s creative strength and loyal community may give it the resilience needed for a comeback. With a new project in early development, many hope the studio will return to single-player storytelling—the genre that brought them success with *Days Gone*.
Until more is known, fans and industry watchers are keeping a close eye on Sony’s upcoming State of Play events for potential updates on Bend Studio’s future.
💬 Final Thought
The Bend Studio layoffs mark another difficult moment in a year full of industry cuts. But with their talent and history, there’s hope this studio will bounce back stronger, ideally with the kind of narrative-driven experiences gamers love.
Also Read: Top Upcoming PS5 Exclusives to Watch in 2025 | Why Are So Many Live Service Games Failing?