It has been a brutal day for UK game development already, as earlier we reported on the news that Splash Damage was to face mass layoffs, and this is something that developer Coatsink is also having to overcome.
As confirmed by parent company Thunderful Group, Coatsink will be losing around half of its total workforce, equating to 50-60 roles, all because of "a more challenging co-development market" and as "the business is currently unable to support all existing employees."
It's mentioned that these layoffs will equal cost reductions of around 10-12 million SEK (around £800,000-£950,000) in the first half of 2026 and 25-30 million SEK (around £2 million-£2.4 million) over the entirety of 2026.
The aim with these layoffs will be to create a "more concentrated focus" so that the "studio remains well positioned to deliver on all existing and upcoming top-tier projects, strengthen partner value, and capitalise on its strong commercial pipeline to secure new opportunities."