Team17 looks to be hit by layoffs as CEO departs company

02.10.2023 - 19:23 / destructoid.com / Michael Pattison

Team17, the publisher of works such as Blasphemous 2, Gord, and Moving Out 2 has entered “a period of consultation,” meaning the company will seek to identify potential redundancies in the organization.

Eurogamer first reported that “significant job losses” at Team17 are expected, with the majority impacting the internal QA, and that company CEO Michael Pattison is leaving. Team17 confirmed that it’s “amicably parted ways” with Pattison in a statement via VG247.

“We can also confirm that we have sadly entered into a period of consultation today within Team17 Digital, with Astragon and Storytoys remaining unaffected by the restructuring plans,” the publisher said to VG247.

Employees were reportedly made aware of potential layoffs in a letter following an emergency town hall. In the letter, the company reportedly praised employees for the company’s significant growth in the first half of 2023.

“However, we recognise these results were against the backdrop of one of the most competitive years for high quality launches and deep peer discounting that the industry has ever seen,” the letter continued. “Within our Group, Team17 Digital in particular has felt the pressure of these challenges, as have many companies in our industry.”

This past March, Team17 experienced layoffs impacting its art and design teams, via Eurogamer. If this current consultation period results in layoffs, this will be the second round this calendar year. In the report by VG247, an unnamed source claims Team17’s marketing department looks to be shrinking by a range of “20-30%,” in addition to the loss of around 50 QA department roles reported by Eurogamer. 

Filling the vacant CEO role will reportedly be Ann Hurley, the commercial operations director for Team17. Pattison joined Team17 in 2021 after serving for over eight years at PlayStation. 

These reports indicate just one of the recent rounds of layoffs at gaming companies. Just in the last month, Embracer Group cut roles at Tomb Raider studio Crystal Dynamics, as well as Baldur’s Gate: Enhanced Edition developer Beamdog. Also, Epic Games let go of 16% of its employees, equating to about 830 people.