Starbreeze Studios Hit by Layoffs as Payday 3 Struggles Continue

It is a difficult start to 2026 for the team at Starbreeze Studios. The Swedish developer, best known for the heist-shooter franchise Payday, is facing another wave of instability. Reports surfacing on Jan 21, 2026, indicate that the studio has initiated a fresh round of layoffs, impacting the team directly responsible for Payday 3. While the company has not yet released an official statement regarding the specific number of roles affected, the news has been confirmed by multiple employees who have shared their departures publicly. This latest reduction appears to be a direct consequence of the continued commercial underperformance of Payday 3, leaving the studio in a precarious position as it attempts to stabilize its finances.

Although Starbreeze management has remained quiet on the exact figures, the human cost of these cuts became visible mid-week when staff members took to LinkedIn to share the bad news. The sentiment from the team suggests a significant restructuring is underway. Alexander Pereswetoff-Morath, a QA specialist at the studio, shared a somber update, noting that "many" of his colleagues received sad news. 

He wrote, "After over 7 years, the longest I've ever been at any company in any industry, my time has (more than likely) come." Similarly, Senior Tech Producer Sabina af Jochnick confirmed that her role had been "identified as at risk of redundancy," signalling that she, too, is now looking for work. These departures highlight the volatile nature of the industry, where even veteran developers are finding themselves suddenly on the job market.

Payday 3 Player Count Plummets Amid Launch Issues

The driving force behind these cuts is the ongoing struggle to make Payday 3 a success. When the game launched in September 2023, it was supposed to be the studio's major earner. Instead, it faced a disastrous release plagued by server outages and matchmaking failures that drove players away almost immediately.

Despite the studio’s best efforts to win fans back, including acquiring the full publishing rights in 2025 to "accelerate content," the player base hasn't returned. The numbers paint a bleak picture. At launch, the game boasted a peak of nearly 78,000 concurrent players on Steam. Recently, that number has plummeted to a 24-hour peak of just 686 players, as reported by GameRant. 

Starbreeze tried to turn the tide throughout 2025. They released the "Party Powder" heist, which saw a small spike to just under 3,000 players, and followed up with the "Skill 2.0" update late in the year. Unfortunately, even the major 2.0 overhaul failed to break the 2,000-player mark. This inability to retain an audience contributed to a staggering $18.5 million loss in 2024, forcing the studio to tighten its belt repeatedly.

Sadly, this week's news is just the latest chapter in a painful timeline. The studio has experienced a consistent decline in its workforce over the last two years as it desperately tries to right the ship. Following the initial poor reception of the game, the studio reduced its staff by approximately 15%, between late 2024 and early 2025. The situation worsened in October 2025, when 44 more positions were removed following the cancellation of "Project Baxter," a co-op game set in the Dungeons & Dragons universe.

While Starbreeze’s struggles are specific to their flagship title, they are also part of a broader, unfortunate trend across the gaming landscape. The last year has seen giants like EA, Ubisoft, Amazon Games, and Microsoft shed thousands of jobs. With Starbreeze leadership announcing plans late last year to invest "significantly less" in Year Two content for Payday 3, the remaining developers face an uncertain road ahead.