Firaxis Games, the studio behind the iconic Civilization and XCOM series, has confirmed a new round of layoffs as part of an internal restructuring effort. The move comes amid shifting strategic priorities and industry-wide turbulence, leaving fans and observers speculating on the studio’s next steps.
Another Hit to Strategy Game Development
The layoffs, confirmed in early September, reportedly affected several departments, including some that had supported the launch of Civilization VII. Released on February 11, 2025, the game marked the studio’s return to its flagship franchise but received mixed reactions, particularly around performance issues and balancing at release. While updates have since improved stability and gameplay, its initial reception left Firaxis with challenges to address both technically and commercially.
For Firaxis, this marks the latest in a series of difficulties. Its previous release, Marvel’s Midnight Suns, was praised critically but underperformed financially, leading to an earlier leadership shake-up in 2023 when longtime studio head Steve Martin departed. Since then, the studio has been under pressure to both satisfy fans and restore its reputation for strategy excellence.
The Fallout from Civilization VII
Although Civilization VII has established a solid player base since launch, the layoffs raise questions about how Firaxis will sustain long-term support. Content updates and expansions may still be on the horizon, but with fewer staff available, the cadence and scope of those updates could shift. Fans are watching closely to see whether the studio can maintain its hallmark depth and innovation in a climate where resources are stretched thinner.
Reflecting Broader Industry Trends
Firaxis is far from alone. The first half of 2025 has seen waves of restructuring and layoffs across major publishers and independent studios alike. A combination of slowed revenue growth, shifting player expectations, and rising development costs has led many companies to scale back even as global interest in gaming continues to grow.
For Firaxis, the coming months will be critical. While Civilization VII continues to anchor its portfolio, how the studio balances support for the game with planning for future projects will determine whether it can steady its course in a rapidly changing industry.
