Indie Publisher "Devolver Digital" Cuts Staff While Reporting Growth

Indie game publisher Devolver Digital has reduced staff at several of its studio subsidiaries, including a 40% cut at Reigns developer Nerial. These layoffs come during a period when the company is reporting financial growth and a return to profitability.

According to Devolver Digital's FY24 investor presentation, Nerial underwent a "team restructure" aimed at addressing "issues around recent releases" and better positioning the studio for future projects. The developer is known for the successful Reigns franchise, which has earned over $20 million in lifetime revenue across five titles, as well as games like Card Shark and the recent "thirst-person shooter" The Crush House.

The cuts at Nerial weren't isolated. Devolver also reported that it reduced headcount at its Polish studio Artificer by more than 50% in early 2024, implementing what it called a "new greenlight process" to refocus the team on "projects better suited for current market conditions and gamer trends." Similarly, Good Shepherd / Big Fan saw its workforce cut by "50%+ over the course of 2024."

These reductions have brought Devolver's total headcount down from a peak of 303 employees at the end of 2023 to approximately 270 now. In the investor presentation, the company framed these changes as "refocusing" and "right-sizing" its smaller subsidiaries, giving them a "tighter focus."

Despite these cuts, Devolver reported positive financial performance. The company's overall revenues increased by 13% year-over-year to $104.8 million, driven by successful lead titles, strong back catalog sales, and improved platform deals. The company also highlighted its return to adjusted EBITDA profitability, meeting its guidance for fiscal year 2024.

The presentation noted that Devolver's back catalog sales were up 20% compared to the previous year, boosted by titles like System Era's Astroneer and post-launch downloadable content for games like Cult of the Lamb. The company's financial position was described as "healthy," with net assets of $165.2 million as of December 31, 2024, and no debt.

These layoffs at Devolver studios add to the troubling trend of job losses in the gaming industry. In the first three months of 2025 alone, approximately 1,600 developers have lost their jobs across multiple companies, including Ubisoft, Eidos Montréal, NetEase Games, and many others.

Despite the cuts, Devolver continues to invest in future projects. The company reported $30.7 million invested into software development in 2024, with key 2025 releases approaching launch and continued development on Starseeker, System Era's next title.