Tony Hawk’s Pro Skater 3+4 developer Iron Galaxy Studios—also known for its work on a number of other ports and co-development projects—is laying off an unknown number of workers as it drastically reduces its company size.
The Chicago-headquartered studio shared the news in a post on LinkedIn stating that “a number of teammates and friends” are being let go as the studio adjusts to “a new company structure.”
“We are terribly sorry to lose them as we take steps to adapt to the climate of the video game industry. It’s time for us to evolve again,” it stated.
The company attributed the layoffs to the ongoing “market conditions” in the video game industry, conditions that have driven mass layoffs and studio closures since at least mid-2022. That year, the studio opened a new office in Nashville, Tennessee, promising to invest almost $1 million and “create” 108 jobs. The studio also has offices in Orlando, Florida and Austin, Texas.
In 2023, the studio’s original game Rumbleverse was shut down after just six months of operations. Since then, its primary focus has been on outsourcing-style co-development partnerships and helping port games like The Last of Us Part I to PC. The company also released a number of UEFN experiences on Fortnite, including Deathtrap Dungeon, which launched in January of 2026.
“This year, we’re adopting a new posture to accept these current market conditions as permanent,” the company said. “Players consume games in new ways. Publishers have different criteria for investing in the development of games. This new normal has impacted all our partners.”
“It’s “impossible” for it to sustain the total number of employees it’s retained in the last year.
That mention of “last year” is notable because in 2025, the company laid off 66 employees in a “last-ditch” effort to save the company.
Game Developer has reached out to Iron Galaxy for comment on the number of employees affected by today’s cuts. We will update this story upon the company’s response.