Full Breakdown
Closure of The Outsiders: Impact of Funcom Layoffs
10/7/2025, 2:12:40 AM
Overview of the Closure
The Outsiders, the Swedish studio known for developing the rhythm-based shooter Metal: Hellsinger, has been closed as part of a series of layoffs at its parent company, Funcom. This decision follows Funcom's announcement of staff reductions shortly after the successful launch of Dune: Awakening, which Funcom described as the "biggest release" in its 32-year history. The closure of The Outsiders marks a significant moment in the gaming industry, reflecting the precarious nature of studio operations despite successful game releases.
Background on The Outsiders
Founded a decade ago, The Outsiders gained recognition for its innovative approach to game design, particularly with Metal: Hellsinger, which received critical acclaim upon its release in 2022. The studio was acquired by Funcom in 2021, shortly before the development of Metal: Hellsinger was completed. The Outsiders had previously faced challenges, notably the cancellation of their project Darkborn, which had put the studio at risk of closure before the successful pivot to Metal: Hellsinger.
Funcom's Layoff Announcement
On October 1, 2025, Funcom announced layoffs as part of a restructuring effort. While the company did not specify the number of affected employees, it acknowledged that the transition from development to ongoing support for Dune: Awakening necessitated a reduction in staff. The Outsiders was among the first studios to feel the impact of these layoffs, with founder David Goldfarb confirming the closure in a heartfelt statement on social media.
Official Statements & Responses
David Goldfarb expressed his shock and sadness over the closure, stating, "I have not had much time to process the news... our 10-year-old studio will be closing." He reflected on the studio's journey, highlighting the team's resilience during difficult times and their hopes for future projects. Goldfarb also called for support from the community, asking for business leads and guidance as the team seeks to continue in some form.
Criticism & Opposition
The closure of The Outsiders has drawn criticism from industry observers who question the logic behind layoffs following a successful game launch. Critics argue that the decision reflects a troubling trend in the gaming industry, where studios are penalized despite achieving commercial success. The juxtaposition of Funcom celebrating Dune: Awakening's success while simultaneously laying off staff has sparked discussions about the sustainability of studio operations in the current market.
Conflicting Reports & Gaps
While Funcom's layoffs have been confirmed, the exact number of employees affected across its various studios remains unclear. Estimates suggest that at least 4,400 developers have been laid off in 2025, but many companies, including Funcom, do not disclose specific figures. The lack of transparency regarding the total impact of these layoffs contributes to uncertainty within the industry.
Verbatim Quotes
- “I have not had much time to process the news but all of us at The Outsiders and Funcom Stockholm have been affected by the layoffs at Funcom and our 10-year-old studio will be closing.” — David Goldfarb, Founder of The Outsiders
- “Many of us had survived a near-death studio experience years back when Darkborn was cancelled, and because of this team’s loyalty and refusal to quit, Metal Hellsinger was born.” — David Goldfarb
- “But we are not giving up, and we are going to try to continue on in some new form.” — David Goldfarb
The closure of The Outsiders serves as a poignant reminder of the volatility in the gaming industry, where success does not always guarantee stability for development teams.
