Dauntless developer Phoenix Labs lays off 'the majority of the studio' after a year of turmoil

Dauntless - Heroes pose in fur trimmed armor
(Image credit: Phoenix Labs)

Phoenix Labs, developer of Dauntless and Fae Farm, has laid off "the majority of the studio" according to announcements made earlier today on Reddit and LinkedIn, as part of what the studio called "unfortunate but necessary changes to our operations."

"We recognize and deeply appreciate the contributions of every individual impacted," Phoenix Labs said. "Their talent, dedication, and creativity have left an indelible mark on our company and our games. We will share more details in the coming weeks about what this means for Dauntless and Fae Farm. For now, our focus is on supporting those affected through this transition."

Today's layoffs are the second major downsizing at Phoenix Labs in less than a year, following a restructuring in May 2024 during which the studio laid off "many" employees and cancelled game development projects in what it called a "last resort to ensure Phoenix Labs can survive, and thrive in the long term."

That turmoil continued into December 2024, when Dauntless launched on Steam alongside a controversial overhaul update that rolled back player progress and implemented a restrictive monetization scheme, which saw the free-to-play Monster Hunter-like plummet to a near-immediate "Overwhelmingly Negative" review rating.

The May 2024 layoffs and Dauntless rework both followed the 2023 purchase of Phoenix Labs by blockchain firm Forte, during which—according to reporting from Game Developer—Phoenix Labs employees were directed not to publicize the acquisition.

The announcement doesn't specify how many employees have been put out of work, but staff affected by today's layoffs make it sound like a studio closure in everything but name. Joshua Hood, former Phoenix Labs lead designer, said in a LinkedIn post earlier today that "the decision was made to finally shut down Phoenix Labs."

I've reached out to Phoenix Labs and Forte for comment and will update if I receive a reply.

News Writer

Lincoln has been writing about games for 11 years—unless you include the essays about procedural storytelling in Dwarf Fortress he convinced his college professors to accept. Leveraging the brainworms from a youth spent in World of Warcraft to write for sites like Waypoint, Polygon, and Fanbyte, Lincoln spent three years freelancing for PC Gamer before joining on as a full-time News Writer in 2024, bringing an expertise in Caves of Qud bird diplomacy, getting sons killed in Crusader Kings, and hitting dinosaurs with hammers in Monster Hunter.

Read more
Dauntless, the monster hunting game we had before Monster Hunter came to PC, will shut down in May
Callisto Protocol
The Callisto Protocol studio lays off more employees, but 'remains operational'
rumbleverse
Iron Galaxy lays off 66 employees in a 'last resort' effort to 'enable our long term survival'
Mechwarrior 5: Clans
Piranha Games will lay off employees after Mechwarrior 5: Clans 'performed below projections'
Smite 2 art
Hi-Rez will only be giving 'minor updates' to Smite and Paladins now it's laying off around 70 employees, but don't worry, Smite 2 is the 'primary focus of the newly streamlined operations'
Lost Skies - in-game characters gliding on primitive parachutes
Bossa says 'disruption' in the game industry 'is not a phase, it's a fundamental transformation' of how games will be made in the future as it lays off more employees
Latest in Action
assassin's creed shadows review
Assassin's Creed Shadows streamer goes viral after confronting whining commenters: 'Normal people don't get upset about this sh***'
Assassin's Creed Shadows change seasons - An upper-body shot of Yasuke looking cheerfully up into the distance.
'This is just the beginning': Assassin's Creed Shadows dev team thanks fans for their support and promises more to come in the future
Assassin's Creed Shadows allies - A close-up of Yaya smiling after joining the League.
All Assassin's Creed Shadows allies and how to unlock them
The First Berserker: Khazan review - Maluca
The First Berserker: Khazan review
An image of Hornet from Silksong engulfed with rage.
Hollow Knight: Silksong gets SteamDB updates, and at this point I can't tell if the end is nigh or if I'm just hope-poisoned
A man with purple hair and face tattoos poses for a mugshot in the GTA 6 trailer.
Playable GTA 6 map nuked without warning by Take-Two lawyers: 'My guess is that the map was probably a little too accurate'
Latest in News
A True Kin knight stands in a ruin in Caves of Qud, flanked by bloodstained furniture and a freshly mortalized corpse.
Despite making a roguelike where you can have countless arms and legs, Caves of Qud's creators say the ideal form is a limbless sphere: 'We started in perfection and only moved farther from God'
Civilization 7 Great Britain - Modern Civ art (via YouTube)
As Civilization 7 struggles to keep up with Civ 5 player counts, a new patch is coming tomorrow with still more UI changes and gameplay tweaks
Metaphor: ReFantazio character art
Metaphor: ReFantazio battle director says turn-based RPGs can still be just as popular as action RPGs: 'I personally believe turn-based games have a long future ahead of them'
assassin's creed shadows review
Assassin's Creed Shadows streamer goes viral after confronting whining commenters: 'Normal people don't get upset about this sh***'
Assassin's Creed Shadows change seasons - An upper-body shot of Yasuke looking cheerfully up into the distance.
'This is just the beginning': Assassin's Creed Shadows dev team thanks fans for their support and promises more to come in the future
Geralt sitting on a wall wearing a Cyberpunk jacket modded by TheRealArdCarraigh
The Witcher 3 devs had to practically remake the game engine to make official modding possible