People Can Fly Confirms Major Layoffs Amid Cancellation of Project Gemini and Project Bifrost
Polish game studio People Can Fly, best known for Outriders and the Gears of War series, has announced another round of significant layoffs following the cancellation of two major projects: Project Gemini and Project Bifrost.
In a heartfelt statement posted on the studio’s official website, CEO Sebastian Wojciechowski confirmed the suspension of both projects, citing external challenges and financial constraints.
"Today we made a very difficult decision to suspend the development of Project Gemini and Project Bifrost — the relevant updates have been shared with the public."
Reasons Behind the Cancellations
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Project Gemini, developed in partnership with Square Enix, was halted due to the publisher’s failure to provide a draft of the content rider — a key contractual document outlining future milestone terms. The lack of communication from Square Enix regarding the project’s continuation further contributed to the decision.
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Project Bifrost, a self-published initiative, was canceled for similar reasons, compounded by a sobering assessment of the studio’s cash flow and resource capacity. According to Wojciechowski, internal analysis revealed that the studio could not realistically secure the funding and organizational support required to move forward with Bifrost.
"The suspension of Project Gemini stems from the Publisher’s failure to provide a draft of the subsequent content rider to the Publishing Agreement, outlining terms for future milestones on Gemini, along with a lack of communication regarding their intent to continue or terminate the project. Project Bifrost was halted due to the same issues, combined with an analysis of the Group’s cash flow that revealed insufficient prospects for securing the organizational resources and funding needed to advance this project."
A Painful Restructuring
Wojciechowski emphasized that the cancellations have led to a massive restructuring of the studio, including a significant reduction in team size.
"As a result, we must significantly restructure as a studio and reduce our team sizes — which is the most painful outcome. We deeply regret how these events have unfolded and sincerely thank everyone for their contributions up to this point."
While the statement does not name Square Enix directly, the studio’s website confirms Gemini was co-developed with Square Enix, while Bifrost was self-published — a notable distinction, as it suggests the financial burden fell more heavily on People Can Fly in the latter case.
Context: A Studio in Turmoil
This latest wave of layoffs follows a prior reduction of 120 staff members at the end of 2023. The studio has since struggled to stabilize operations, even as it continues work on other projects:
- Project Echo: Collaborating with Krafton (of Blue Protocol and Battlegrounds fame)
- Project Delta: Partnering with Sony
- Gears of War: E-Day: In development with Microsoft
Additionally, People Can Fly recently released Bullestorm VR, a modernized reimagining of the classic Bullestorm shooter, now available on Meta Quest and PSVR 2.
Industry Reaction
The cancellation of two projects — especially one with a major publisher like Square Enix — has raised concerns across the gaming industry about the sustainability of AAA development, particularly for studios operating outside the largest publisher ecosystems.
Square Enix has not yet issued a public statement in response to the news.
In Summary:
- Project Gemini (with Square Enix) → Cancelled due to publisher inaction and unclear roadmap
- Project Bifrost (self-published) → Cancelled due to funding and cash flow issues
- Layoffs confirmed — another major reduction in team size
- Studio continues on Gears of War: E-Day, Project Echo, and Project Delta
- Bullestorm VR remains the studio’s most recent release
As People Can Fly navigates this turbulent period, the gaming community watches closely — a stark reminder of the risks that even acclaimed studios face in today’s volatile industry.
“We are not giving up. We are adapting — and we will continue to create.”
— Sebastian Wojciechowski, People Can Fly CEO
