The team behind the highly successful narratively-driven “The Walking Dead” video game adaptation was rocked with massive layoffs this week, with nearly 90 percent of the estimated 250 employees let go, a source with the company who asked not to be named told Variety. That information was later confirmed by Telltale. The remaining employees will finish the Netflix “Minecraft: Story Mode” interactive series.
Employees were told of the company-wide layoffs starting Friday morning during a company meeting, a source said.
The news lands just before the release of episode two of the final season of the studio’s arguably most successful series, “Telltale’s The Walking Dead.” Suffer the Children is set for release on Tuesday, Sept. 25. The release of the rest of the final season is “uncertain,” the source told Variety.
Following news of the layoffs hitting, Telltale CEO Pate Hawley issued the following statement:
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Earlier this week, both a designer and the creative director for “The Walking Dead” season spoke with Variety at length about the future of the series and the company for an unrelated feature. Neither seemed aware that potential problems were brewing at the studio.
That the news came suddenly was backed up by a source today who told Variety that “everything changed today.” That could be tied to news that the Telltale Games’ planned “Stranger Things” game as well as “The Wolf Among Us 2” were, according to a source, canceled.
Rumblings about the Telltale Games lay offs began circulating Friday afternoon on Twitter.
Asking for me. I don’t have a job any more.
— Emily Grace Buck (@emilybuckshot) September 21, 2018
Devastating loss today, not only for the industry, but my friends as well. Love my Telltale family and all the opportunities I had there. Paul will remember that.
— Paul Mastroianni (@paulmastroianni) September 21, 2018
For the record, I’m really proud of my work at Telltale and my coworkers’ work. We had some cool shit in the pipeline. To say this is a major bummer is a huge understatement.
— Caroline Liddick (@carolineliddick) September 21, 2018
Telltale and Netflix revealed the two companies are partnering up earlier this summer during E3 2018 for new projects, including a game based on the “Stranger Things” TV series and the aforementioned “Minecraft” Netflix series.
The deal at the time seemed to signal a fresh start for the studio, which had a change in management in Sept. 2017 after its former CEO, Kevin Bruner, was ousted from Telltale Games.
Under Bruner’s leadership, Telltale Games was reportedly known for having poor working conditions. Those internal issues were hinted at by at least one former employee today.
— Job J Stauffer (@jobjstauffer) September 21, 2018
Lionsgate is a minority investor in the company, but has already written down a portion of its investment. A spokesperson for the company declined to comment when reached by Vareity.
This story is developing.
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