Iron Galaxy Studios has announced layoffs for the second time in two years, citing ongoing market changes in the video game industry. The Chicago-based studio did not specify how many employees were affected, but noted the cuts were necessary to adapt to what it calls the new normal in game development.

In a LinkedIn post, the company explained that since 2020, the industry has fundamentally changed in how players consume games and how publishers fund projects. Despite a previous round of layoffs in 2025 that eliminated 66 positions, the studio says it cannot sustain its current team size. Iron Galaxy has worked on notable titles including Batman: Arkham Origins, Batman: Arkham Knight, and Tony Hawk's Pro Skater 3+4.

The studio also handled ports for several major games to the Nintendo Switch, including Overwatch, Dauntless, Apex Legends, and Metroid Prime Remastered. In its announcement, Iron Galaxy emphasized that it views these market conditions as permanent rather than temporary, forcing the company to evolve its structure and focus.