DON'T NOD has told investors it cannot guarantee operations beyond January 31, 2027, after posting a €4.3 million loss on €6.1 million in revenue for the first half of 2026.

The Paris-based studio, best known for Remember Me and the original Life Is Strange, disclosed the going-concern warning alongside its half-year results this week. Cash reserves stood at just €8 million as of the end of July 2026. Given those reserves and projected cash flows, the company stated that its continuation past January 31, 2027 is no longer assured. Survival now depends on securing external financing.

The H1 2026 loss extends an already damaging run. In 2025, DON'T NOD lost €2 million in the first half, followed by a €10.3 million loss in the second half — more than €12 million in losses over twelve months. First-half 2026 revenue of €6.1 million fell well short of covering operating costs.

In response, management has outlined a two-part restructuring aimed at cutting the cash burn.

First, the studio is abandoning parallel production. DON'T NOD will develop only one game at a time, ending the multi-project pipeline that had stretched its resources across several titles simultaneously.

Second, layoffs are under consideration. The proposed cuts could affect roughly 90 employees. DON'T NOD has not disclosed its exact current headcount, but the studio employed around 320 people as recently as 2022, and earlier redundancy rounds have already reduced that figure. On that basis, the proposed reduction would eliminate approximately half of the remaining workforce.

The restructuring follows earlier cost-trimming measures that proved insufficient to offset the studio's losses.

For DON'T NOD's remaining teams, the implications are direct: development resources consolidate onto a single project, and roughly half of colleagues face potential redundancy while the company searches for outside funding to bridge the gap to January 2027. For publishing and platform partners, the warning raises questions about the delivery timelines of any titles currently in the studio's pipeline.

The studio has not named potential financiers, specified which projects will be prioritized under the single-game model, or set a date for a final decision on the layoffs. Whether DON'T NOD secures financing before its stated January 31, 2027 deadline is the signal to watch.