Virtuos, the studio behind The Elder Scrolls 4 Oblivion Remastered, is laying off seven percent of its workforce, affecting around 270 employees. The news was first reported by journalist Gauthier Andres and later confirmed by the company. Virtuos, known for its work on major gaming projects like Cyberpunk 2077 patches and the upcoming Metal Gear Solid Delta Snake Eater, employs over 4,200 people globally.
The layoffs primarily impact teams in Asia and Europe, with around 200 job cuts in Asia and 70 in Europe. Fewer than 10 employees in France, where the Oblivion Remastered team is based, are affected. Virtuos stated that the restructuring is due to lower demand in certain service segments and a need to align its workforce with client locations. The company is offering severance packages, career transition support, and potential relocation opportunities where possible.
Virtuos has been expanding through acquisitions, including studios like Beyond-FX, Pipeworks, and Third Kind Games, to strengthen its capabilities in VFX, Unreal Engine development, and creative design. However, the company noted that some service areas are seeing weaker demand, prompting the reorganization.
The layoffs come amid broader instability in the gaming industry. Microsoft recently cut jobs in its Xbox division, canceling projects like Everwild and shutting down studios like The Initiative. Romero Games also lost funding for an unannounced project due to Microsoft’s restructuring but is seeking a new publishing partner.
Despite Virtuos’ involvement in high-profile projects like Dune Awakening and Sea of Thieves, the studio is not immune to industry-wide challenges. Even studios specializing in remasters and live-service support are facing financial pressures, reflecting the volatile nature of the gaming market.
The layoffs were officially confirmed by Virtuos on July 17, 2025, as part of its strategy to adapt to changing industry demands. The company remains focused on premium co-development while scaling back in less profitable areas.
