The news that RuneScape developer Jagex has laid off an unspecified number of employees – just weeks after launching its new open-world survival title RuneScape: Dragonwilds – is yet another reminder of the gaming industry’s turbulent restructuring phase in 2025. While the studio was quick to assure fans that ongoing game development will remain unaffected, the layoffs underscore deeper shifts in how studios are adapting to economic pressure, evolving development models, and shifting player expectations.
What Happened at Jagex?
Jagex confirmed that the layoffs are part of a broader internal restructure, aiming to:
- Reduce complexity
- Increase agility
- Focus on the areas that matter most
According to statements, most of the roles affected were in non-development and non-player-facing functions, such as operations and administrative support. The company’s roadmap for RuneScape and Dragonwilds remains unchanged – for now.
| Recent Studio Layoffs | Affected Departments | Game Impact |
|---|---|---|
| Jagex (May 2025) | Operations/Admin | None stated |
| EA (May 2025) | Respawn, Mobile Teams | Project cancellations (e.g. Black Panther) |
| Playtonic | Unknown | Team downsizing confirmed |
| Hi-Rez Studios | Senior Management | Structural streamlining |
Insider Tip: Studios are increasingly cutting support staff rather than frontline devs, signalling a return to leaner, more game-focused pipelines. If you’re working in a support role in games, now is the time to upskill toward design, production, or UX.
Why This Matters for the Industry
These cuts are part of a broader pattern in 2024 – 2025: studios shedding non-essential departments to focus solely on active revenue-driving products. In Jagex’s case, this means tightening focus around the RuneScape franchise – still one of the longest-running MMOs in existence – and its spinoffs.
This comes during a year already marked by:
- High-profile game cancellations (EA’s Black Panther, Titanfall project)
- Studio closures (Cliffhanger Games, Hi-Rez redundancies)
- Even engine developers like Unity implementing workforce cuts
Insider Tip: If you’re developing a game right now, make sure your vertical slice is rock-solid before pitching.
What It Signals for Developers & Studios
- Smaller Teams, More Accountability: The age of bloated game companies may be behind us. Studios are scaling down to stay nimble and avoid long development cycles that don’t convert.
- Live Service Pressure: Games like RuneScape rely on consistent content drops and community engagement. Expect devs to double down on this as competition in the live service space tightens.
- Increased Risk for Experimental Projects: Studios may shy away from experimental titles or unproven genres, favouring safe bets and established IP.
Insider Tip: Publishers are scrutinising ROI more than ever – and “ambitious” no longer sells without evidence.
Final Thoughts
Jagex’s layoffs are just one data point in an increasingly data-rich trend: the industry is reorganising itself around sustainability, focus, and value delivery. While this may ultimately lead to stronger core game experiences, it comes at a cost – both human and creative. If there’s a silver lining, it’s this: the studios that survive this period will likely be the ones that know exactly who they are, who they serve, and what they’re making.
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