Iron Galaxy layoffs could affect up to 90 employees after Tony Hawk remasters

Iron Galaxy announced another round of layoffs on Apr. 17, 2026, and Kotaku reports the cuts could affect up to 90 employees. The r/Games post was created on Apr. 17 at 17:28 UTC and had 310 score with 52 comments at crawl time.

The Chicago-based studio is best known for co-development and porting work, including support across Killer Instinct, Batman: Arkham, Borderlands, The Last of Us Part II Remastered on PC, and last year's Tony Hawk's Pro Skater 3 + 4 remaster collection. Kotaku says the new downsizing follows an earlier 2025 reduction of 66 employees.

Studio says market conditions changed

Iron Galaxy's public explanation, as summarized by Kotaku, is that the studio no longer expects the post-2020 games market to return to its old shape. The company pointed to changes in player consumption, publisher investment criteria, and partner demand. Its message was that it could not sustain the team size it carried through the last year even after the previous downsizing.

The timing is notable because the layoffs follow visible shipped work rather than a canceled project announcement. That makes the story part of a wider co-development pressure cycle: even studios attached to recognizable franchises are exposed when publishers slow spending, live-service bets miss, and platform-porting demand changes. For workers and contractors, the practical signal is that a shipped remaster no longer guarantees staffing stability into the next fiscal year.

Studio: Iron Galaxy

Reported impact: up to 90 employees

Prior 2025 cut: 66 employees

Recent project: Tony Hawk's Pro Skater 3 + 4