Phoenix Labs is laying off majority of employees, 2 years after Forte deal
Phoenix Labs, the maker of Dauntless and Fae Farm, has laid off a majority of its staff two years after it was quietly acquired by blockchain gaming firm Forte.
The layoffs came a month after releasing an unpopular update for Dauntless on Steam, and just before another game was set to go into early access, according to comments from employees laid off on social media.
In a post on Bluesky and LinkedIn, Phoenix Labs announced that it was “another difficult day at Phoenix Labs. It said the company made the “tough decision to part ways with the majority of the studio as part of unfortunate but necessary changes to our operations.”
The company said it appreciated the contributions of the people impacted, and it will share more details in the coming weeks about what it means for Dauntless and Fae Farm.
Dauntless is a free-to-play live service game, while Fae Farm is a premium game with online multiplayer. Game Developer reported on turmoil at the studio after Forte Labs acquired it quietly in 2023, without announcing the change in ownership.
The Awakening update for Dauntless was criticized by players for its new in-app monetization and the loss of previous progression. The game now has overwhelming negative reviews on Steam. Phoenix Labs was previously owned by Singapore’s Garena, publisher of Free Fire and a subsidiary of Sea Ltd. Garena divested the company in 2023, and Phoenix Labs had previously laid off 160 people after the Forte deal.
