Respawn Entertainment’s Major Restructuring: Layoffs, Cancellations, and Industry Challenges in 2025

Photo by César Abner Martínez Aguilar on Unsplash

Respawn Entertainment, the acclaimed developer behind hit franchises like Titanfall, Apex Legends, and the Star Wars Jedi series, experienced significant upheaval in 2025 that fundamentally altered the studio’s trajectory. The EA-owned developer faced one of its most challenging periods, marked by substantial layoffs, project cancellations, and declining employee morale that sent shockwaves through the gaming industry.

The April 2025 Restructuring

In April 2025, Respawn Entertainment announced a major restructuring that resulted in approximately 100 employees being laid off as part of broader cuts across Electronic Arts. The layoffs were part of a larger series of reductions affecting 200-300 staff members across EA as a whole, representing one of the most significant workforce reductions in the company’s recent history.

The restructuring involved what Respawn described as “targeted team adjustments” across its Apex Legends and Star Wars Jedi development teams. These adjustments were particularly notable given that the Star Wars Jedi team was actively working on a follow-up to the successful 2023 release, Star Wars Jedi: Survivor. The timing of these cuts raised concerns about the development timeline for upcoming projects and the studio’s ability to maintain its ambitious production schedule.

EA issued a statement acknowledging the difficulty of these decisions, expressing gratitude to affected employees and promising “meaningful support,” including efforts to find new opportunities within the broader EA organization. However, the scale and timing of the layoffs suggested deeper strategic challenges facing both Respawn and its parent company.

Project Cancellations and Strategic Shifts

Perhaps more significant than the layoffs themselves was the cancellation of two early-stage incubation projects that had been in development at Respawn. These cancellations represented a strategic shift away from experimental development and toward more focused production on established franchises.

One of the cancelled projects was particularly noteworthy: an extraction shooter set within the beloved Titanfall universe. This cancellation was especially disappointing to fans who had been eagerly awaiting any new content related to the Titanfall franchise, which had been largely dormant since Titanfall 2’s release in 2016. The extraction shooter format had been gaining popularity in the gaming industry, making the cancellation of this Titanfall-themed project a missed opportunity to capitalize on both franchise nostalgia and current market trends.

The second cancelled project remained largely undisclosed, but its termination alongside the Titanfall extraction shooter indicated that Respawn was moving away from experimental or high-risk development initiatives. This strategic pivot suggested that EA was prioritizing established, revenue-generating franchises over innovative new concepts that might not guarantee immediate returns.

Impact on Employee Morale and Company Culture

The restructuring and cancellations had a profound impact on employee morale at Respawn Entertainment. Patrick Wren, a senior encounter designer at the studio, publicly expressed his frustration on social media platform Bluesky, stating that “morale has been at an all-time low” and expressing sympathy for colleagues who “just want to make cool video games in this industry.”

This public acknowledgment of low morale was particularly significant coming from a senior developer, as it provided rare insight into the internal culture at one of the gaming industry’s most respected studios. The statement reflected broader challenges facing the gaming industry in 2025, where widespread layoffs and project cancellations had become increasingly common.

The impact on morale was compounded by the uncertainty surrounding future projects and job security. Employees who had dedicated years to developing cancelled projects faced the dual disappointment of seeing their work abandoned and concerns about their professional future within the company.

Broader Industry Context and Challenges

Respawn’s difficulties in 2025 were part of a broader crisis affecting the gaming industry. According to industry tracking websites, over 2,300 gaming industry professionals lost their jobs in the first half of 2025 alone, with that number continuing to grow throughout the year. This represented one of the most challenging periods for gaming industry employment in recent memory.

The layoffs at Respawn were preceded by similar cuts across EA in 2024, when the company laid off approximately 5% of its workforce. This pattern of recurring layoffs suggested systemic challenges within EA’s business model and strategic approach to game development, rather than isolated incidents at individual studios.

The gaming industry’s challenges in 2025 were attributed to various factors, including changing consumer preferences, increased development costs, and economic pressures that forced publishers to prioritize short-term profitability over long-term innovation. Respawn’s experience exemplified these broader industry trends, as even successful studios with popular franchises were not immune to these pressures.

Impact on Key Franchises

The restructuring had varying impacts on Respawn’s major franchises. Apex Legends, despite being one of the most successful battle royale games in the market, faced team reductions that raised questions about the game’s future development and content pipeline. EA had previously acknowledged that Apex Legends “fell short of expectations” during certain financial periods, adding pressure to the development team to revitalize the franchise.

The Star Wars Jedi series, which had been a critical and commercial success for Respawn, also faced uncertainty due to team adjustments. The third entry in the series, rumored for a 2027 release, remained in development, but the reduced team size raised questions about whether the ambitious timeline could be maintained without compromising quality.

The Titanfall franchise, meanwhile, suffered another setback with the cancellation of the extraction shooter project. This represented a continued absence of new Titanfall content, disappointing fans who had been hoping for a revival of the beloved mech-combat series that had helped establish Respawn’s reputation as an innovative developer.

Future Outlook and Strategic Direction

Despite the challenges, Respawn maintained its commitment to continuing development on key projects. The studio confirmed its ongoing work on the third Star Wars Jedi title and its collaboration with Bit Reactor on Star Wars Zero Company, a single-player turn-based tactics game set during the Clone Wars era.

EA’s broader strategic direction appeared to focus on fewer, more established franchises rather than experimental new properties. This approach prioritized financial stability over creative innovation, reflecting the risk-averse environment that had come to characterize much of the gaming industry in 2025.

The company’s commitment to supporting Apex Legends for “10 to 15 years” remained in place, with additional studio locations in Vancouver and Madison continuing to contribute to the game’s development. However, the reduced team size at the main Respawn studio raised questions about the scope and frequency of future content updates.

Photo by Kevin Grieve on Unsplash

Lessons and Industry Implications

Respawn Entertainment’s challenges in 2025 highlighted several critical issues facing the modern gaming industry. The cancellation of innovative projects like the Titanfall extraction shooter demonstrated how economic pressures could stifle creativity and prevent studios from taking the risks necessary for breakthrough innovations.

The situation also illustrated the human cost of industry consolidation and financial optimization. Talented developers who had contributed to some of gaming’s most beloved franchises found themselves casualties of broader economic forces beyond their control, raising questions about the sustainability of current industry practices.

For gaming enthusiasts and industry observers, Respawn’s experience served as a sobering reminder of the challenges facing even the most successful studios. The company’s ability to navigate these difficulties while maintaining the quality and innovation that had made it famous would likely determine its future role in the gaming landscape.

The events at Respawn Entertainment in 2025 represented more than just corporate restructuring; they symbolized the broader challenges facing an industry struggling to balance creative ambition with financial realities. As the gaming industry continued to evolve, the lessons learned from Respawn’s experience would likely influence how other studios approached development, innovation, and workforce management in an increasingly uncertain environment.