Skybox Labs, a Canadian game development studio and subsidiary of NetEase, has announced the layoff of 25 staff members due to ongoing challenges in the industry. In a statement shared on LinkedIn, the studio expressed that it had done its best to navigate these unprecedented difficulties but ultimately had to make the reduction.

The studio reassured affected employees that they would receive comprehensive support during this transition, including severance packages, extended benefits, and career transition services. “We are grateful for everyone who made the choice to join the team at SkyBox and are deeply thankful for their contribution to our studio and the great games we’ve created together,” the statement concluded.

Founded in 2011, Skybox Labs is known for co-developing popular titles such as Halo Infinite, Minecraft, and Fallout 76. NetEase acquired the studio at the beginning of last year, reflecting its commitment to expanding its presence in the gaming industry.