Fishlabs has begun layoffs across its development and support teams, the German studio confirmed, without disclosing how many employees will lose their jobs.

The company attributed the cuts to "changing project requirements and the needs of our clients and internal teams." The wording suggests a shift in the studio's work-for-hire portfolio rather than a single cancelled title, though Fishlabs offered no specifics on which projects or partners drove the decision.

"We are deeply grateful to everyone affected for their passion, dedication, and contribution to Fishlabs," the studio said in a statement. "This decision is not a reflection of their talent or performance, and we are committed to supporting them with care and respect as they take their next steps."

"Fishlabs remains committed to its partner projects and our teams moving forward," the company added. "For today, however, our priority is supporting the colleagues and friends who are leaving us."

What changes for the studio and its staff?

For affected workers, the practical question is severance and placement support, which Fishlabs says it will provide but has not detailed. For partners, the studio insists delivery continues unchanged. What remains unclear is the scale: without a headcount, observers cannot gauge whether this is a targeted trim or a structural reduction.

The ownership chain matters here. Fishlabs is a subsidiary of Plaion, which sits within Embracer Group's portfolio. That structure ties the Hamburg studio's fortunes to a parent that has spent years cutting costs.

This is not the first contraction. Fishlabs cut 50 roles in 2023 as part of Embracer Group's wider restructuring program, which eliminated hundreds of positions across the conglomerate's studios.

A studio with a history of financial near-misses

Fishlabs was founded in 2004 by Michael Schade and Christian Lohr. Koch Media, later renamed Plaion, acquired the studio in 2013 after Fishlabs had filed for the German equivalent of bankruptcy, a process that terminated 25 positions.

Schade and Lohr left the company shortly after and founded Rockfish Games in 2014, the studio behind the Everspace space-shooter franchise.

Rockfish's trajectory now runs partly on public money. Earlier this year, the German government awarded the developer €8 million from its expanded games fund, a pot now worth €125 million, to support the next Everspace game — a signal that Germany's state funding has grown into a meaningful pillar for mid-sized domestic developers even as publisher-owned studios contract.

What to watch next

The number of layoffs at Fishlabs, if it surfaces through German works-council filings or social posts from affected staff, will indicate whether Plaion is making a small adjustment or preparing a deeper pullback from the studio.