Playtonic, the developer behind the Yooka-Laylee series, has confirmed layoffs at the studio.
In a statement shared on social media, the studio stated it has “felt the knock-on effects” of recent changes in the industry and so, “after exploring every possible avenue” it has made “the incredibly heartbreaking decision to say goodbye to some truly brilliant members of the Playtonic team”.
It’s unclear if Playtonic’s next game, the remaster Yooka-Replaylee, has been affected. It’s set for release later this year.
“We’ve all seen in recent years how the games industry has been changing, resulting in studio after studio finding themselves in situations where to continue to exist, they must make painful decisions – decisions that impact the lives of so many individual talented developers,” the statement reads.
“This isn’t a reflection of anyone’s talent or dedication, the people leaving have poured so much heart, creativity, and care into everything we do. They’ve helped shape our studio, our games, and our culture, and we’re incredibly proud of what we’ve built together.”
The studio surmised: “This isn’t simply a difficult moment, it’s a period of profound change in how games are created and financed. The landscape is shifting, and with it, so must we.”
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— Playtonic (@playtonicgames.com) 30 May 2025 at 13:32
According to a LinkedIn post from Playtonic brand manager Anni Valkama, layoffs have impacted the production, art, game design, narrative design, and UI/UX design teams. Others affected have shared posts on LinkedIn over the past couple of weeks.
Kevin Bayliss, who designed Donkey Kong and Diddy Kong for Rare’s Donkey Kong Country games on SNES and now works as an artist at Playtonic, also shared his thoughts. “I love working in the games industry, but it’s been a sad couple of weeks for us at Playtonic Ltd since we’ve lost some great talent and friends due to redundancies,” he wrote. “I feel extremely lucky to still have a position doing what I enjoy, but also very lucky to have had the pleasure of meeting and working with the lovely people that we’ve had to say goodbye to.”
Yooka-Laylee, released back in 2017, was seen as a spiritual successor to Banjo Kazooie, inspired by 90s 3D platformers. It was followed by a side-scrolling sequel, Yooka-Laylee and the Impossible Lair two years later.
In 2021, Playtonic announced its publishing label Playtonic Friends.
Yooka-Replaylee is aiming to launch across PS5, Xbox Series X/S, and PC with revised graphics, overhauled animations, and new challenges. Its trailer includes a Nintendo logo, suggesting it’s headed to Switch 2 too.