2K has laid off employees at 31st Union, the development studio behind the upcoming free-to-play shooter Project Ethos. The company confirmed the job cuts in an internal memo from studio head Ben Brinkman, which was subsequently shared with GamesIndustry.biz.
Ben Brinkman, who took over leadership of the studio in 2024, stated in the memo that the decision is part of a strategic shift. He indicated that 2K is moving toward a “new direction and focus” for the studio, though specific details regarding the scope of the layoffs or the number of affected staff were not disclosed.
Background on the studio and project
31st Union was originally founded in 2019 by Michael Condrey, a co-founder of Sledgehammer Games known for work on the Call of Duty franchise. The studio was acquired by 2K Games and tasked with developing a new intellectual property.
Project Ethos was officially revealed in October 2024 as a free-to-play, third-person hero shooter. The game features a roguelike mode and emphasizes character-based combat. It entered a closed alpha testing phase for PC players shortly after its announcement.
Industry context
The layoffs at 31st Union add to a continuing trend of workforce reductions across the video game industry. Major publishers including Microsoft, Sony, Electronic Arts, and Unity have conducted significant layoffs over the past 18 months. The cuts have often targeted development teams for live service and free-to-play projects.
Free-to-play shooters, while popular, have become an increasingly competitive market segment. Games like Valorant, Overwatch 2, and Apex Legends dominate the space, making it challenging for new entries to establish a stable player base and generate sustained revenue.
2K’s parent company, Take-Two Interactive, has previously announced restructuring plans aimed at cost reduction. In a February 2024 filing, Take-Two stated it would cut approximately 5 percent of its global workforce, affecting over 500 employees.
Implications for Project Ethos
The future of Project Ethos remains uncertain following the staffing changes. Brinkman’s memo suggested the studio is realigning its development priorities but did not confirm whether the project would continue as originally planned.
The game had already received a mixed reception during its initial alpha testing. Community feedback highlighted concerns about the game’s identity and market positioning within a saturated genre. The shift in studio direction may involve significant revisions to the game’s design, monetization model, or launch timeline.
Industry analysts note that layoffs during a game’s pre-launch phase can delay production and disrupt team cohesion. For a live service title reliant on ongoing content updates, maintaining a stable development team is critical for long-term success.
What comes next
2K has not provided a public timeline for the next phase of Project Ethos testing or a potential full release date. Brinkman indicated that the studio will communicate further details regarding the “new direction” in the coming months.
Affected employees are expected to receive severance packages and transition support, though specific terms were not outlined in the memo. The layoffs serve as another indicator of the ongoing volatility within the video game development sector, particularly for projects operating under the free-to-play model.
Source: GamesIndustry.biz
