Funcom Announces Layoffs and CEO Departure in Shift to Live Support
The corporate reorganization coincides with the planned departure of Chief Executive Officer Rui Casais, who will step down upon concluding the transition. The studio is pivoting all internal development resources entirely toward supporting its existing live-service survival titles Dune: Awakening and Conan Exiles. Casais, who has served with the Oslo-headquartered developer for twenty-two years, stated that downsizing is necessary as projects shift from peak development into operational maintenance. Chief Product Officer Scott Junior, who previously served as executive producer on Dune: Awakening, has been selected to succeed Casais as chief executive.
In January 2024, Tencent subsidiary Riot Games planned to lay off 530 employees, representing about 11% of its workforce.
Transitioning from Peak Production to Live Operations
In an official corporate statement, Casais explained that Dune: Awakening was the most resource-intensive development undertaking in Funcom's corporate history. Casais emphasized that transitioning from full-scale production to long-term post-launch service operations demands a structurally leaner organization. He stated on record that the company cannot sustain peak development staffing levels as the game enters its operational lifecycle. Casais affirmed that his primary administrative focus is ensuring that departing colleagues receive respectful and transparent support throughout the restructuring.
In October 2025, Funcom shuttered Swedish subsidiary The Outsiders, which it acquired in 2021.
Commercial Trajectory of Dune: Awakening
Dune: Awakening achieved immediate commercial success upon launching in June of last year, selling one million units in two weeks. Community backlash centered on the game's PvP-heavy mechanics and faction-dominated endgame progression loops. In response, Funcom overhauled the title last month to introduce solo play and dedicated PvE modes alongside its competitive multiplayer framework.
Conan Exiles Investment and Frozen Project Pipeline
Alongside adjustments to Awakening, Funcom invested substantially in its flagship survival game Conan Exiles throughout the year. Conan Exiles received a modern engine upgrade, a major paid narrative expansion, and enhanced character creation options. Bylos noted that conceptual discussions for future projects remain distant background thoughts rather than active pre-production roadmaps.
Studio Succession and Parent Company Pressures
Funcom declined to disclose the exact number of personnel affected by the current round of layoffs. The current staff reduction represents the studio's second round of layoffs in approximately twelve months following cuts enacted in October last year. Industry analysts link the restructuring to broader gaming market contraction and cost-reduction pressures from parent conglomerate Tencent. Incoming leader Scott Junior will guide the studio forward with a singular operational focus on sustaining profitability across its two core survival franchises.
Tencent divested Western studio businesses including Secret Mode, Splash Damage, and Bulkhead as part of a more assertive portfolio approach.