Bithell Games trims staff after funding struggles

Bithell Games announces eleven redundancies as it faces a tough funding climate and reshapes its studio size.

Bithell Games cuts majority of staff after funding challenges

Bithell Games said eleven full-time positions will be made redundant, constituting the majority of its staff. Founder Mike Bithell posted on Bluesky that the studio has been unable to secure a new large-scale project and must shrink in size.

The studio will continue to support its existing self-published titles and will offer severance packages to ease departures. Bithell praised the team for their talent and encouraged industry partners to consider affected staff in future hiring.

The move underlines a harsher funding climate for smaller, independent studios even after acclaimed projects. Securing investment remains a crowded, opaque process, and transparency from leaders can shield trust, even as it signals uncertainty ahead.

Indie developers often depend on publishers or strategic partnerships; when those streams dry up, studios must decide between pivoting to smaller projects, self-publishing, or delaying growth. Bithell Games’ emphasis on its people and willingness to connect affected staff with potential employers is a tactful step that may help preserve morale and future hiring chances, though the broader industry remains volatile.

This case highlights a growing need for diverse funding models and clearer pipelines for indie teams. It also tests how publishers and partners respond when a studio publicly acknowledges financial strain, a dynamic that could influence investment sentiment for similar projects.

Highlights

The industry will watch how Bithell Games navigates a tough funding landscape and what long-term effects this may have on its creative output.