Don't Nod Employees Accuse Management of 'Illegal' Practices Amid Layoff Fears

Employees at Don't Nod, the studio behind the original Life is Strange games, have issued a stark warning: the company is at risk of insolvency and layoffs, and management is accused of engaging in 'illegal' practices that have left staff feeling 'uncertain and anxious.' The statement, released on October 27, comes from members of the French game industry union Le Syndicat des Travailleureuses du Jeu Vidéo, which revealed that Don't Nod is currently under a safeguard procedure to protect itself from insolvency—meaning it wouldn't be able to pay its debts.

According to the union, management presented employees with 'several financial scenarios' for the near future, all of which 'included redundancies.' The worst-case scenario forecasts 'the liquidation of the company through 2026.' The statement claims that 'nearly all of the non-managerial jobs' were cut at Don't Nod, including all animators, character artists, concept artists, associate producers, and most environmental artists, sound designers, level designers, programmers, QA testers, HR, and developers. Half of its game designers were also laid off.

'Management is extremely clearly going for heavily individualized targeting and hasn't been shy about their intent to keep selected people in rather than jobs, which is illegal,' the union wrote. The statement also alleges that management is betting on outsourcing to take on the workload of these fired team members—a decision the union feels is 'out-of-touch.'

The letter goes on to say that Don't Nod employees have been 'living on the edge, in uncertainty and anxiety' for the last two years, to the point where six workplace accidents occurred this year and an inquiry was recently launched into a 'serious and immediate danger.' It also alleges that management 'refused to let those who would be willing to leave earlier go through a voluntary leave plan,' saying they 'do not care about the damage it deals to employees' health.'

The statement ends on a striking note: a government agency representing employees is set to make its ruling on November 3. After that, management will have 21 days to decide on a plan. If the plan is accepted, employees could 'get their firing letters on November 25.' 'If it were to be rejected however, management would have to go back to the drawing board and improvise because, as you might have gathered, planning for contingencies isn't their forte,' the letter concludes.

This is the latest development in Don't Nod's dire financial situation after auditors warned in a financial report that the company could run out of cash as early as November. Its latest game, Aphelion, was released earlier this year to middling reviews, and given this recent union tell-all, its next project could be in peril.