Bithell Games reduces staff after funding setback

Bithell Games announces layoffs affecting the majority of its full-time staff after failing to land a larger project, signaling broader funding pressures in the indie game sector.

Bithell Games reduces staff after funding setback

Bithell Games said eleven full-time positions are being made redundant after the studio was unable to secure a new larger scale project. The update, posted by studio founder Mike Bithell, describes the move as a consequence of broader funding challenges in 2024 and 2025 and notes that the layoffs affect the majority of the studio’s full-time staff. The post adds that existing self-published games will continue to be supported, and that the team has tried to ease departures with severance packages.

The studio says it communicated the challenges ahead of time and encourages those affected to seek new opportunities. It also states that it remains grateful to its audience for supporting the work and will help connect former staff with potential employers where possible.

The decision underscores how even established indie studios can be vulnerable when funding partners are scarce. A single failed pitch or delayed project can ripple through staffing, product timelines, and morale. As mid-sized studios chase larger partnerships, they face a balancing act between preserving core talent and controlling costs. Bithell’s emphasis on severance and outreach to potential employers reflects a practical approach to minimize damage to people while the company recalibrates its portfolio. This moment may push other studios to rethink talent strategies, from freelance pipelines to safer, diversified project bets.

Highlights

The future path for Bithell Games now depends on how it leverages its remaining assets and the talent it has cultivated.