The wave of layoffs sweeping the games industry has reached Media Molecule, one of Sony’s most recognized first-party studios. This comes after the team ended live service support for its game creation platform Dreams.

Media Molecule hit with layoffs after making "significant strategic changes"

GLHF broke the news on October 24, citing sources that say Media Molecule plans to lay off around 20 employees. This represents approximately 15% of the studio’s total headcount of 135, but the share could reportedly reach 20%.

Media Molecule then confirmed the layoffs on X (former Twitter), saying that it has made “significant strategic changes during the past year.” It didn’t clarify how many people will be laid off, but those impacted will be provided with support.

“We have had to make the difficult decision to begin the consultation process for team members within certain departments of the studio,” a statement reads. “This is a tough moment for the individuals impacts and the studio overall.”

Former Lionhead Studios developers Kareem Ettouney, Alex Evans, and Mark Healey founded Media Molecule in 2006 after securing an investment from Sony. The Japanese publisher acquired the team in 2010.

Best known for the LittleBigPlanet series, Media Molecule also developed Dreams, a game creation system/platform that allows players to make their own projects and other user-generated content. The studio decided to end its live service support in September 2023 to “shift our focus to an exciting new project.” However, details about its next game remain undisclosed.

Thousands of games industry workers have already lost their jobs in 2023. According to, the estimated total is now 6,400. The wave of layoffs affected companies of all sizes, including BioWare, CD Projekt, Epic Games, Team17, Telltale Games, Daedalic, and more.

Swedish holding company Embracer Group is one of the most notable examples, as its restructuring has already affected several internal teams and led to the closure of Volition and Campfire Cabal.

Got a story you'd like to share? Reach us at [email protected]