Funcom announces restructuring and layoffs

Funcom, a Swedish video game publisher, is reducing its in-house production scale and laying off staff as part of a major restructuring. This decision follows the closure of the Metal: Hellsinger studio in 2025 and the recent shutdown of The Outsiders studio after the release of Dune: Awakening in the same year.

Shift to post-launch support

Current CEO Rui Casais explained that the company is transitioning from full-time development of Dune: Awakening to post-launch support, which requires a different organizational structure. Casais acknowledged that while the company would have preferred to keep all employees involved in Dune: Awakening, it cannot retain everyone in the next phase of development.

Leadership change and Tencent’s influence

Casais is also set to leave the company by the end of the year and will be replaced by current product head Scott Junior. The restructuring comes amid reports that Funcom’s parent company, Tencent, has been tightening its oversight of subsidiaries since December 2025. Tencent has directed Funcom to prioritize Dune: Awakening over other projects and has been more cautious about investments.

Focus on existing games

Funcom stated it will focus on supporting its existing games, Dune: Awakening and Conan Exiles, in the future. The recent layoffs may be partially influenced by directives from Tencent, which has been seeking to withdraw from several studios. However, Funcom is not expected to be abandoned immediately.

New CEO outlines priorities

Scott Junior, who will take over as CEO, emphasized the importance of managing the growth of Dune: Awakening and Conan Exiles and structuring the company to support these games through gameplay updates. He also highlighted the need to maintain a close relationship with the gaming community.