ZA/UM Studio, the developer behind the acclaimed video game Disco Elysium, announced layoffs affecting up to 32 staff members across all departments. The news came via a statement released on the studio's social media channels on Friday, July 17, 2026. The company cited the weak commercial performance of its latest game, Zero Parades: For Dead Spies, as the main reason for the workforce reduction.[eurogamer+2]
Commercial Performance Cited
- Zero Parades: For Dead Spies launched in May 2026 to critical acclaim from reviewers. However, its sales did not meet the studio's expectations. ZA/UM stated that the game's commercial performance "has not enabled us to sustain a studio of our current size." Data from SteamDB showed that Zero Parades* reached an all-time peak of 3,177 players around its release, but player numbers have steadily declined since then. This financial outcome made the layoffs necessary, according to the studio.
Studio's Troubled History
The recent layoffs are not the first for ZA/UM, which has faced significant internal conflicts and workforce changes in recent years. In 2024, the studio laid off approximately 24 employees following the reported cancellation of a Disco Elysium spin-off project.The studio has also been at the center of public and legal disputes since the success of Disco Elysium in 2019.[eurogamer+3]
A major controversy unfolded in October 2022 when several key developers, including Disco Elysium writer and designer Robert Kurvitz, writer Helen Hindpere, and art and design lead Aleksander Rostov, reportedly left the studio involuntarily.Kurvitz and Rostov later launched a lawsuit against ZA/UM, alleging that certain individuals gained control of the studio and its intellectual property through fraudulent means.ZA/UM denied these claims, making their own accusations in return.These disputes led to a messy period for the studio.[ign+6]
Amid these challenges, ZA/UM employees formed the first recognized video game developers' union in the UK in October 2025, known as the ZA/UM Workers' Alliance.The studio, which reportedly had around 100 employees at that time, confirmed that it "continued to consult and work with representatives of the ZA/UM Workers' Alliance" throughout the current layoff process.This consultation highlights the ongoing efforts to manage employee relations within the studio.[eurogamer+3]
Impact and Future Outlook
The layoffs affect staff across all departments, signaling a significant restructuring for the UK-based developer. Despite the difficult news, ZA/UM expressed its commitment to its core mission. "This changes the shape of ZA/UM, but not its purpose," the studio said in its statement. "Our artistic standards remain unchained: we will persist."The studio also included an appeal for other companies to consider hiring the affected employees. "To anyone currently hiring, please consider the colleagues leaving ZA/UM," the statement read.[eurogamer+3]
These job cuts at ZA/UM are part of a broader trend of layoffs impacting the video game industry in recent months, affecting numerous studios worldwide. The commercial underperformance of Zero Parades: For Dead Spies, despite its critical reception, underscores the challenging economic landscape for game developers. The studio aims to continue its work, albeit with a smaller team, focusing on its artistic vision even as it navigates financial pressures and its complex history.
