The studio was purchased by NetEase in January 2023 and told it would be given the resources to retain workers and make new hires.
Halo Infinite co-developer Skybox Labs is laying off 25 employees.
The NetEase studio said the redundancies are being made in response to the "unprecedented challenges that have impacted so many companies in the industry."
Skybox was formed in 2011 and has worked on notable titles like Minecraft, Fallout 76, Destiny 2, and Halo Infinite. The company has expanded significantly over the years, and currently has over 275 team members working on multiple triple-A projects.
Chinese conglomerate NetEase acquired Skybox Labs in 2023 for an undisclosed fee. At the time, NetEase said it would provide the studio with the resources and execution capabilities required to retain staff and hire new employees.
"NetEase will support the studio with resources and execution capabilities so that SkyBox Labs can achieve faster scale while maintaining the quality of work the studio is known for," reads a press release issued at the time.
In a statement posted on LinkedIn, Skybox explained it has now chosen to downsize.
"Today we informed our studio that we made a reduction to our staff at SkyBox. In total, 25 people from our studio have been affected. Despite all our best efforts, we are not immune to the unprecedented challenges that have impacted so many companies in the industry," reads the statement.
"Every impacted employee will be fully supported through severance, extended benefits, career transition services, and connection to other resources to provide them with the assistance they require during this difficult time. We are grateful for everyone who made the choice to join the team at SkyBox and are deeply thankful for their contribution to our studio and the great games we’ve created together."
Skybox Labs becomes the latest in a seemingly endless list of companies to have made layoffs in 2024.
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