Garick Elordi
While a formal statement from the corporate offices of Warner Bros. Discovery or its new parent organization has yet to be released, a series of public disclosures from former employees indicates that Warner Bros. Games Montréal has become the latest studio to undergo significant layoffs. On Friday, March 13, numerous developers across a wide array of disciplines—including design, art, and production—updated their professional profiles on LinkedIn to announce they were seeking new opportunities following their departure from the studio. These reports suggest a coordinated reduction in force, aligning with broader economic shifts and a massive corporate restructuring following the acquisition of Warner Bros. by Paramount Skydance.
The situation at the Montréal-based studio, best known for its work on Batman: Arkham Origins and the 2022 release Gotham Knights, appears to be a direct consequence of the aggressive cost-cutting measures predicted by industry analysts and competitors alike. The timing of the departures, specifically at the end of the business week on March 13, mirrors the "Friday layoff" pattern frequently seen in the technology and entertainment sectors during periods of consolidation.
The Paramount Acquisition and the Sarandos Prediction
The catalyst for these structural changes is the recent high-stakes acquisition of Warner Bros. by Paramount Skydance, a deal that saw the latter outbid major competitors, including the streaming giant Netflix. During the bidding process, Netflix co-CEO Ted Sarandos offered a stark assessment of the financial reality facing the combined entity. Sarandos noted that the Paramount bid was predicated on a strategy of extreme fiscal discipline, stating that the success of the merger would be "dependent on a lot of cost-cutting."
Industry analysts at GamesIndustry.biz and Bloomberg have suggested that the acquisition mandates a reduction in expenditures exceeding $16 billion within the first 18 to 24 months of operation. These cuts are expected to target redundancies across the combined company’s portfolio, with the gaming division—once considered a core growth pillar for Warner Bros.—now facing intense scrutiny due to recent underperformance.
A Turbulent Period for Warner Bros. Games
The reported layoffs at WB Games Montréal are not an isolated incident but rather the latest in a string of setbacks for the company’s interactive entertainment arm. The division has struggled to maintain the momentum established by the massive success of Hogwarts Legacy in 2023. According to the company’s 2025 Q1 earnings report, gaming revenue plummeted by 48 percent year-on-year. This precipitous drop was attributed largely to the lack of new major releases and the commercial failure of recent high-budget projects.
The financial strain was exacerbated by the performance of Suicide Squad: Kill the Justice League, developed by sister studio Rocksteady. The title, which attempted to pivot the renowned Arkham series developer into the "live service" genre, failed to meet sales expectations and received a lukewarm reception from both critics and players. This failure led to a reported $200 million impairment charge for Warner Bros. and subsequent layoffs at Rocksteady.
In addition to the Rocksteady downsizing, the company has seen several other high-profile projects stalled or shuttered:
- Hogwarts Legacy Expansion: Despite the base game selling over 24 million copies, a planned major expansion was reportedly canceled as the company shifted focus toward other internal priorities.
- Wonder Woman (Monolith Productions): Rumors have circulated regarding the status of the Wonder Woman game currently in development at Monolith Productions, with some reports suggesting the project has faced significant internal hurdles or potential cancellation as part of the broader studio closures.
- MultiVersus: The free-to-play platform brawler MultiVersus experienced a tumultuous lifecycle, including a temporary shutdown and a relaunch that struggled to recapture its initial player base, leading to further internal disappointment.
Financial Performance and the Studio Segment
In its most recent quarterly earnings call, Warner Bros. Discovery characterized 2025 as a "significant" year of transition. However, the data provided a sobering look at the current state of its creative divisions. The full Studios segment, which encompasses both theatrical film production and video games, saw its total revenue decline by 14 percent compared to the previous year.
Management has signaled a "rebuilding" phase for the video game pipeline under the new Paramount Skydance leadership. This strategy reportedly involves a move away from volatile, high-budget live-service experiments in favor of more stable, franchise-led titles. However, the "rebuilding" process often begins with the streamlining of existing assets, which appears to be the current reality for the staff at WB Games Montréal.
The Legacy of WB Games Montréal
Warner Bros. Games Montréal has occupied a unique position within the DC Games ecosystem. Founded in 2010, the studio was established to expand the reach of the Batman: Arkham franchise. Its first major project, Batman: Arkham Origins (2013), was a prequel to Rocksteady’s trilogy and was generally well-received for its narrative and boss battles, though it was criticized for sticking perhaps too closely to the established formula.
After years of supporting other projects and developing smaller titles, the studio released Gotham Knights in October 2022. The game was an ambitious attempt to create a co-op-focused action RPG centered on the "Bat-family" following the death of Bruce Wayne. While it found a dedicated audience, it struggled to achieve the "must-play" status of its predecessors, with critics pointing to performance issues at launch and a grind-heavy progression system. The mixed reception of Gotham Knights may have left the studio vulnerable during the current round of corporate evaluations.
Broader Industry Context: The "Great Layoff" Era
The situation at WB Games Montréal is reflective of a broader, more systemic crisis within the global video game industry. Since early 2023, the sector has been rocked by tens of thousands of layoffs across nearly every major publisher, including Sony Interactive Entertainment, Microsoft (Xbox and Activision Blizzard), Electronic Arts, and Ubisoft.
Industry experts point to several converging factors for this instability:
- Post-Pandemic Correction: During the COVID-19 pandemic, gaming engagement reached record highs, leading many companies to over-expand and over-hire. As consumer behavior normalized, revenue growth slowed, leaving companies with unsustainable overhead.
- Rising Development Costs: The "AAA" development model has become increasingly expensive, with budgets for flagship titles now routinely exceeding $200 million. When a game fails to become a massive hit, it can jeopardize the stability of the entire studio.
- Interest Rates and Consolidation: Higher interest rates have made capital more expensive, prompting parent companies to prioritize immediate profitability and "lean" operations over long-term speculative projects.
Implications for Future DC Projects
The reduction in staff at WB Games Montréal raises questions about the future of the DC gaming slate. With Rocksteady currently in a state of flux and Montréal losing key talent, the "pipeline" that Warner Bros. Discovery executives mentioned during earnings calls appears increasingly thin.
Fans have been anticipating news regarding potential sequels or new projects involving the DC license, particularly given the recent reboot of the DC Cinematic Universe (DCU) under James Gunn and Peter Safran. Gunn has previously expressed a desire for more synergy between the films and games, but the current instability within the gaming division suggests that any such integration may be several years away.
For now, the focus remains on the human cost of the restructuring. As developers from WB Games Montréal enter a crowded and difficult job market, the industry at large continues to grapple with a period of painful contraction.
Warner Bros. Games has not yet responded to requests for an official comment regarding the number of employees affected or the specific reasons for the layoffs at the Montréal location. As of this report, the studio’s official social media channels and website remain active, though no new projects have been announced since the final updates for Gotham Knights.
