adminHeart Machine layoffs have left the game studio facing an uncertain future after a publishing deal fell through. The developer of Hyper Light Drifter says the lost funding meant it had to let go of nearly everyone on staff, and studio head Alx Preston has not yet confirmed whether the company can continue operating.
Image credit: Heart Machine
Heart Machine layoffs follow a collapsed publishing deal
Preston shared that the publishing agreement had been an important source of income. With that deal gone and no immediate replacement funding or other prospects available, the studio was unable to retain most of its team. He described the layoffs as devastating and said the company’s next steps remain unclear.
Preston also said Heart Machine would offer affected employees as much support as it could, including help with job placement. The studio asked people with suitable opportunities to get in touch so it could connect them with former staff members.
For people following the studio, it is important to distinguish between significant layoffs and a confirmed closure: Heart Machine has described closure as a possibility, not as a completed decision. Preston said the team would continue trying to find a way forward while the studio remains active.
A series of cuts over nearly three years
The latest layoffs follow three rounds of staff reductions in nearly three years. An unspecified number of employees were made redundant in November 2024 as Hyper Light Breaker approached its early access launch. Two further rounds took place in October 2025.
The first of the later cuts came as development on Hyper Light Breaker concluded. Heart Machine linked the decision to wider challenges affecting smaller studios, including changes in funding, corporate consolidation, and an uncertain business environment.
A second round followed a few weeks later. Although the studio did not announce those redundancies, several employees reported being laid off 12 days before the release of Possessor(s). One affected staff member expressed concern that people who had worked on the game might no longer be at the company by launch.
When assessing the impact of these cuts, the number of affected employees and the timing of each round matter: the November 2024 figure was not specified, while the later account describes two separate rounds in October 2025.
Union recognition and what happens next
Heart Machine also voluntarily recognized a union after 13 staff members formed a bargaining unit. That development came amid a difficult period for the studio and its employees.
For now, the company’s long-term outlook remains unresolved. The collapse of the publishing deal and the resulting Heart Machine layoffs are clear, but Preston has not said whether new funding or another agreement will secure the studio’s future. Any further update on its plans could clarify whether it can continue developing games and supporting its remaining team.
