Skydance Cuts Jobs in Games Division

The layoffs follow Skydance's takeover of Warner Bros. Discovery, which closed about a month earlier.

Updated on Nov. 9, 2026 in Gaming

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Skydance began cutting jobs in its games division, which owns the studios behind Mortal Kombat, Batman: Arkham, Hogwarts Legacy, and the Lego games. The company has not said how many people lost their jobs or issued a statement confirming the cuts.

Why it matters

The cuts follow a 'Day 1' memo from chairman and CEO David Ellison and co-CEO Ynon Kreiz warning that layoffs would be part of combining the two companies. The combined business is tied to a savings target of more than $6 billion in annual costs within three years.

Skydance's merger of its games operations with Warner Bros. Discovery was valued at $110 billion, with the company targeting more than $6 billion in annual cost cuts within three years. The total number of games-division positions affected has not been disclosed.

The players

Skydance

Skydance is a Hollywood production company led by David Ellison that expanded into games and, with this deal, took over Warner Bros. Discovery.

Warner Bros. Discovery

Warner Bros. Discovery is a major American media conglomerate whose studios and games units were absorbed into Skydance after the takeover.

David Ellison

David Ellison is the chairman and CEO of Skydance who authored the 'Day 1' memo warning of layoffs.

The details

Affected workers, including David Ballard of Paramount Games, posted about the layoffs on LinkedIn, and one Skydance Interactive programmer said most of her team was let go. Executives reportedly expect most savings to come from areas other than staff, such as real estate and combined streaming technology.

February 2025: WB Games closed Monolith Productions, Player First Games, and Warner Bros. Games San Diego and canceled Monolith's Wonder Woman game.
October 26, 2026: Ellison and Kreiz sent a memo offering some employees a one-time voluntary buyout and requiring five days a week in the office.
About one month before November 9, 2026: Skydance closed its takeover of Warner Bros. Discovery.
November 9, 2026: Skydance began cutting jobs in its games division.
November 9, 2026, 5 p.m. ET: Skydance holds its third-quarter earnings call, its first since the deal closed.

Industry Dynamics

The cuts extend the wave of studio closures that began when WB Games shut Monolith Productions, Player First Games, and Warner Bros. Games San Diego in February 2025. Consolidation across Hollywood's game studios is now being driven by large media mergers rather than by individual game performance.

Players of franchises like Mortal Kombat, Batman: Arkham, Hogwarts Legacy, and the Lego games could see slower development or fewer releases from the affected studios. The cuts may also affect how quickly new titles reach store shelves and subscription services.

The takeaway

Large media mergers can reshape game studios quickly, even when the affected titles are well known. Readers following a favorite franchise should watch for official announcements from the company's earnings calls rather than relying on individual employee posts.

What happens next

Skydance's third-quarter earnings call on November 9, 2026 at 5 p.m. ET is the next scheduled moment when the company may address the layoffs and the scope of its cost-cutting plans.