Oslo-based game studio Funcom, the team behind the open-world game Dune: Awakening, has announced upcoming layoffs. In an exclusive statement given to GI.biz on Wednesday, October 1, the Tencent subsidiary said it will terminate staff despite Dune: Awakening being “the biggest release [Funcom] had in [its] 32-year long history of making great games.” News of layoffs at Funcom follows news of Tencent and Ubisoft’s collaborative new venture, Vantage Studios.
“The game has already shown incredible potential,” Funcom said in its statement to GI.biz, “and the right way forward is to focus our internal resources on releasing new content, features, and enhancements.” The brand continues:
“The transition from development to long-term live operation, while also building towards a major console release next year, will require us to restructure our teams and focus our resources from across projects and studios. Unfortunately, this also means having to say goodbye to cherished colleagues.
“This difficult process is starting now, and we cannot yet determine the exact impact. We are working to find new opportunities for those affected.
“Our focus now is to provide these team members with the support and guidance they need, and we ask for your understanding at this time as we will not make further comments during this process.”
Dune: Awakening, Funcom’s hit sandbox survival game, was released on June 5, 2025. The adaptation immerses players in Frank Herbert’s Dune dystopia, allowing players to personalize their own avatar, hand-pick their mentor, hone unique skills, and navigate the eye-popping world of Arrakis. The title is the fastest-selling release in Funcom history, moving 1 million units in the two weeks following its release. Dune: Awakening will hit PlayStation 5 and Xbox sometime next year.
Funcom, founded over three decades ago, self-designates as an MMORPG pioneer. Over the course of its history, the brand has released more than two dozen games, “from Casper on the original PlayStation to NBA Hang Time on the SNES to The Longest Journey, and Secret World Legends.” China-based tech titan Tencent acquired Funcom in 2020 in a deal valued at about $148 million. It is unclear how many employees will be affected by cuts.
This is a developing story.
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