Virtuos Confirms Layoffs Impacting 7% of Global Workforce, Including Oblivion Remastered Team

Image Credit: Elder Scrolls IV: Oblivion Remastered/Virtuos

Virtuos, the co-development studio known for its support work on Metal Gear Solid Δ: Snake Eater and the highly anticipated Elder Scrolls IV: Oblivion Remastered, is undergoing a major restructuring, resulting in mass layoffs across multiple regions.

The studio has officially confirmed that approximately 300 employees, or 7% of its global workforce, are being laid off.

The cuts are being made across Virtuos’ offices in the United States, Asia (100), and Europe (70), including three studios in France (10).

The move was first reported by journalist Gauthier Andres, who noted that the initial wave of layoffs will primarily affect staff in China, but other regions will also feel the impact.

In a statement, Virtuos described the layoffs as part of an ongoing "realignment of global footprint and capabilities" to better match shifting industry demands and client needs. The company explained that “structural shifts” in the industry have caused a slowdown in demand for certain services, particularly in Asia, where the largest number of employees were let go.

Interestingly, fewer than ten employees from Virtuos’ Lyon studio, which handled most of the work on Oblivion Remastered, were affected. However, Andres claims that internal tensions have been rising since the game's development wrapped up in February. He cited concerns over “over-spending on quality”, a royalty-free contract, and the absence of performance-based bonuses, which left many teams feeling overworked and underappreciated.

Following these internal disputes, Virtuos reportedly froze raises and slashed bonuses, prompting employees to question management's long-term plans. In response to the layoffs, a strike has been launched at Virtuos Lyon in protest, with staff demanding better communication and protection for future operations.

The company also acknowledged a growing emphasis on generative AI, with mandatory training now being introduced at the employee level. One anonymous source told Andres that within a year, Virtuos went from holding “a few group-level presentations” to making AI training a required part of staff development.

Despite the restructuring, Virtuos says it remains committed to current projects, including continued support for Cyberpunk 2077, the Konami collaboration on Metal Gear Solid Delta, and further development on Oblivion Remastered. According to the official Virtuos statement, affected employees will receive severance packages, career transition assistance, and, where possible, opportunities for redeployment within other global offices.

While Virtuos has expanded significantly over the past year—with acquisitions like Pipeworks, Beyond-FX, and Umanaïa in North America—the studio is now clearly shifting focus to streamlining operations and aligning closer with client locations.