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NetherRealm Studios Layoffs Hit Entire Mobile Division Amid Broader Industry Cuts

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NetherRealm Studios
Photo: NetherRealm Studios

NetherRealm Studios has laid off its entire mobile division, marking another significant blow to the gaming industry, which has seen widespread job cuts in recent years. The layoffs were confirmed through LinkedIn updates and posts on ResetEra, where affected employees revealed they had received termination notices. Many of those impacted were long-serving staff who had contributed to key projects, including the revitalization of Mortal Kombat after Armageddon and the development of Injustice: Gods Among Us.

The mobile division had most recently been focused on Mortal Kombat: Onslaught, a mobile game that served as a companion to the iconic fighting series. Signs of the division’s impending closure became apparent in July when the game’s official Twitter/X account announced that the title would be shutting down. The message read: “We are sorry to inform you that Mortal Kombat: Onslaught will close its operations in October. It has been an honor creating this game for our Kommunity, and we appreciate the enthusiasm from our fans… Onslaught will shut down on 10/21/24, with the game removed from app stores on 7/22/24 and in-game purchases disabled by 8/23/24.”

This decision adds to the growing tally of job losses within the gaming sector, which has now surpassed 11,000 as companies continue to downsize and restructure. Industry giants like EA, Activision Blizzard, and Ubisoft have all enacted layoffs in recent years, signaling a broader trend of cost-cutting amid shifting market dynamics.

Broader Impact and Reactions

The layoffs at NetherRealm reflect wider challenges facing the mobile gaming market, as studios reassess their strategies and prioritize high-revenue projects. For fans, the closure of Mortal Kombat: Onslaught and the disbandment of the mobile team has come as a shock. Many players took to social media to express their frustration, with some calling the move a “betrayal” of the franchise’s community.

While NetherRealm and its parent company WB Games have yet to make an official statement regarding the layoffs, the lack of communication has only fueled discontent among fans and industry observers alike. Many are now questioning the future of NetherRealm’s mobile development efforts and whether the studio will continue to explore mobile adaptations of its flagship titles.

Job Losses in the Industry

This latest round of cuts at NetherRealm is part of a larger wave of layoffs that have hit the gaming industry over the past two years. Economic uncertainties, rising development costs, and shifting player preferences have led companies to make tough decisions. With over 11,000 jobs lost in the sector so far, industry insiders expect this trend to continue as companies refocus their efforts on fewer, larger projects.

The closure of NetherRealm’s mobile division is not just a loss for the studio but also for the skilled developers and staff members who contributed to its success. As they look for new opportunities, the gaming community and industry at large are left reflecting on the continued volatility within the sector.

What’s WB’s response

As of now, neither Warner Bros. Games (WB Games) nor NetherRealm Studios have made an official public statement regarding the layoffs of the entire mobile division. The news about the job cuts has primarily surfaced through social media posts and LinkedIn updates from affected employees, leaving the official stance of WB Games unclear.

Typically, companies may delay issuing a formal response until internal matters are addressed, such as severance packages or employee transitions. The absence of a public comment from WB Games has led to frustration among fans and industry observers, many of whom are looking for transparency about the decision and the company’s future plans for mobile gaming. Given the significant impact on long-serving staff and fan reactions, many are awaiting WB Games’ explanation or acknowledgment of the situation.

If and when WB Games issues a statement, it will likely address both the layoffs and the future of NetherRealm Studios’ projects, especially its focus on Mortal Kombat and the company’s long-term strategy regarding mobile gaming.

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