NetEase has initiated layoffs at Spliced Inc, its remote-first AAA game studio founded in 2023 with an anti-crunch philosophy. The studio aimed to prioritize work-life balance and flexible hours while maintaining high-quality output and realistic project scopes. Now, redundancy proceedings have begun at Spliced's UK branch, with uncertainty about whether US and Canadian offices will be affected.

This follows a troubling trend in the gaming industry, with Avalanche Studios closing branches, Ubisoft announcing potential layoffs of up to 18% of staff, and Wildlight laying off most developers after its Highguard launch. The Spliced layoffs come just eight months after the studio began hiring for three new positions. According to LinkedIn posts from affected employees, including lead animator Matt Johnson and senior artists Sergii Zlobin and Kenji Shimomura, an ongoing redundancy process threatens their positions.

The seniority of affected staff suggests at least one project may be cancelled, though no projects had been publicly announced. Shimomura's comment that "it's wild that a AAA Studio has died without showing anything" underscores the rapid decline of Spliced's ambitious vision. This closure represents another blow to efforts for healthier work environments in game development.