Maximum Entertainment has laid off employees at its subsidiary Merge Games and closed the studio’s Chelford, England office as part of a wider cost-cutting initiative. The move comes in line with the company’s ongoing consolidation strategy aimed at streamlining operations.
In a statement provided to GamesIndustry, CEO Christina Seelye said, “We made the difficult but necessary decision to take further cost-cutting measures, and these unfortunately include staff redundancies.” At this time, the exact number of employees affected by the layoffs remains unclear.
Merge Games’ Portfolio to Merge with Maximum Entertainment
As part of the consolidation, Merge Games’ portfolio, which includes notable titles like Spirit of the North, its upcoming sequel, Spirittea, and physical releases for The Thaumaturge, will be integrated into Maximum Entertainment’s broader catalog. Whether the Merge Games brand will continue to operate as a separate entity has not been confirmed.
Parent Company Zordix’s Strategy
The layoffs follow parent company Zordix’s rebranding of its gaming division as Maximum Entertainment in 2023. The reorganization included the merger of subsidiaries such as Merge Games, Modus Studios, and Maximum Games under the Maximum banner. This restructuring is designed to align the company’s operations and reduce overhead.
Seelye reiterated the company’s commitment to future growth, stating, “Maximum has a full and competitive roadmap for 2024. We must enter 2025 stronger and leaner to continue our best work.” This strategic consolidation is intended to prepare the company for the challenges and opportunities ahead.
Future Prospects
With its streamlined operations, Maximum Entertainment is positioning itself for long-term sustainability in the competitive gaming market. The company’s focus on a robust roadmap for 2024 highlights its ambition to navigate the changing landscape while continuing to deliver high-quality games.
What’s next for staff
For the staff affected by the layoffs at Merge Games, the future remains uncertain as details about support or transition assistance have not been provided. While Maximum Entertainment has not specified any severance packages, reemployment efforts, or partnerships with external organizations to help displaced staff, the broader gaming industry may offer opportunities.
Typically, during such layoffs, developers and publishers may offer assistance such as severance pay, extended benefits, or career transition services. Additionally, some studios in the industry engage with third-party organizations or recruitment platforms to help laid-off employees find new positions. Given the talent pool in game development, impacted staff could find opportunities at other studios, especially in a competitive industry that frequently seeks experienced developers.
In the UK, where Merge Games is based, organizations like Ukie (The Association for UK Interactive Entertainment) and Games Jobs Live often run events and initiatives to connect displaced workers with potential employers. It’s possible that former Merge Games employees might benefit from similar resources to facilitate their transition.
Many former employees may also turn to independent or freelance work, given the industry’s growing support for smaller, indie developers. Networking within industry communities, such as through platforms like LinkedIn or Twitter, will likely be key for these developers in finding new roles.
Any severance packages
As of now, there has been no public information or official statement from Maximum Entertainment regarding severance packages for the staff affected by the layoffs at Merge Games. CEO Christina Seelye’s statement focused on the broader consolidation strategy and the necessity of the cost-cutting measures but did not mention specifics about compensation or severance support for those impacted.
Typically, companies undergoing layoffs may offer severance packages, extended benefits, or other forms of assistance to help employees transition to new opportunities, but the details can vary depending on company policy, local labor laws, and financial circumstances. In the UK, where Merge Games was based, labor laws may provide certain protections or requirements for redundancy pay based on factors like length of service and the employee’s contract.
If any severance or assistance programs are being offered, they might be communicated privately to the affected staff rather than through public channels.
