Spanish studio MercurySteam has announced a workforce reduction, stating it is undergoing a “staff adjustment process” that will lead to layoffs. In a LinkedIn post, the company described the situation as “difficult and painful,” while also acknowledging that such events are unfortunately common within the industry’s production cycles.
MercurySteam has appealed to other companies to consider hiring the affected employees, highlighting their talent, effort, and commitment as integral to the studio’s history. The company emphasized its focus on managing this transition with responsibility, humanity, and respect over the coming weeks.
While the exact number of employees affected by these layoffs has not been officially disclosed, sources close to the studio suggest that around fifty individuals will be let go. MercurySteam currently employs approximately 250 people.
This news comes just two days before the scheduled Steam release of Blades of Fire. The game is set to launch with a substantial “Version 2.0” update, which refines and expands the player experience. This update, originally released for consoles and the Epic Games Store last May, introduces new features such as a New Game Plus mode, boss rush challenges, new weapons, and technical improvements. This updated version will also be rolled out to other platforms.
The relaunch of Blades of Fire on Steam, powered by Version 2.0, appears to be an effort to boost the game’s sales. Digital Bros, the owner of 505 Games and the publisher of Blades of Fire, had previously noted that sales were lower than anticipated, despite generally positive reviews from both press and players.
The internal situation at MercurySteam has faced scrutiny before. Last year, the CGT’s Video Game Union Coordinators (CSVI) denounced “bad practices and working conditions” within the studio. At that time, 24 layoffs were reported, linked to the underperformance of Blades of Fire. Further reporting detailed issues such as crunch, dismissals, and “random audits” to monitor employee communications.
However, the challenges at MercurySteam are not solely attributed to Blades of Fire. The studio has experienced turbulence for years. In 2021, following the release of Metroid Dread, an investigation revealed concerning working conditions, with employees expressing fear of a management that was perceived as willing to damage careers. This indicates a longer history of internal difficulties within the studio.
