title: "Iron Galaxy Hit by More Layoffs After Saying 2025 Cuts Were a ‘Last Resort’" excerpt: "Iron Galaxy has announced another round of layoffs, saying even last year’s" downsizing still left the studio too large for today’s games industry. category: esports date: '2026-04-18T04:00:54+08:00' author: Aimirul tags:
- Iron Galaxy
- gaming industry
- layoffs
- Deej
- Killer Instinct featured: false coverImage: /images/esports/iron-galaxy-hit-by-more-layoffs-after-saying-2025-cuts-were-a-last-resort.jpg
Iron Galaxy has confirmed another round of layoffs, just over a year after the studio cut 66 jobs in 2025 and called that move a "last resort" for its long-term survival.
In a statement posted on LinkedIn, the studio said it is once again shrinking its headcount as part of a new company structure. Iron Galaxy said some staff are losing their jobs as it tries to adapt to what it now sees as a permanent shift in the videogame business, not a temporary slump.
That is the part that really stands out. Back in 2025, the studio framed those earlier cuts as an emergency move to stay alive. Now, it is saying that even after that downsizing, the company was still carrying more people than it could realistically support.
According to Iron Galaxy, the wider industry changes that started around 2020 never truly bounced back to the old normal. Instead of waiting for conditions to improve, the studio says it is now restructuring around the idea that this is the normal.
In plain English, that means Iron Galaxy believes the market has changed for good, and it has to become a smaller company to match.
The developer did not reveal how many employees were affected this time. But one of the known names is David "Deej" Dague, the former Bungie community manager who became a familiar face to Destiny players over the years. Dague left Bungie in 2020 and joined Iron Galaxy shortly after.
In his own message, Dague said he had spent more than five years at Iron Galaxy and thanked the team for what he described as a meaningful professional experience. He also said the company has always tried to live by its values, and wished the studio well.
For gamers, Iron Galaxy is best known for work on Killer Instinct Seasons 2 and 3, Rumbleverse, and Tony Hawk's Pro Skater 3 + 4. It is a recognisable name, especially for players who follow fighting games, live service titles, and co-development work behind the scenes.
Why should Malaysia and the wider SEA audience care? Because this is not just one studio having a bad month, bro. It is part of a bigger pattern across the global games business, where even experienced teams are struggling to hold size after the post-2020 boom period. We have already seen similar cuts at multiple Western studios, and that matters here too because SEA talent, support studios, outsourcing partners, community teams, and esports-adjacent roles are all tied into the same global pipeline.
When publishers and developers tighten up, it usually means fewer experiments, more cautious hiring, and a stronger push toward safer projects. For players, that can affect everything from community support to update cadence to whether risky new games even get greenlit in the first place.
It also lands at a weird moment for Iron Galaxy specifically. Just last month, the studio got people talking after posting a "please stand by" screen associated with Fallout: New Vegas, which sparked speculation that it might be involved in a remaster. Iron Galaxy later shut that down, saying the image was simply part of its regular monthly meeting materials.
So no, there is still no New Vegas remaster news here. The real headline is much rougher: another established studio is cutting deeper after already saying it had made the hard choice once before.
For anyone watching the games industry from Malaysia or anywhere else in SEA, this is another reminder that the reset period is not over yet.
Source: PC Gamer
