Kwalee Labs lays off entire dev team after Luna Abyss launch

The entire nine-person development team at Kwalee Labs has been laid off, just weeks after the successful launch of its debut title, the first-person shooter Luna Abyss. The layoffs were announced by the studio's CEO, Hollie Emery, in a LinkedIn post on Tuesday, June 16, 2026.

Emery confirmed that the entire team was made redundant effective Monday, June 15, a decision she described as being completely outside of the team's control. She stated that all affected employees are now available for work. The layoffs come approximately 26 days after Luna Abyss launched on Steam, PlayStation 5, and Xbox consoles on May 21, 2026.

The game, a sci-fi adventure blending bullet-hell action and platforming, has been well-received by critics and players since its release. It holds a "very positive" rating on Steam. In her post, Emery expressed pride in the team's achievement, noting the challenges of developing a critically successful title with such a small team in a competitive genre. No specific reason was given for the sudden staff reduction.

Kwalee Labs, based in Coventry, England, was originally founded as Bonsai Collective in June 2019. The mobile game publisher Kwalee acquired the...