One of the few remaining designers at Telltale Games says the developer just laid off more people. Narrative designer Rachel Noel was one of a small group of people who survived a recent mass layoff at the studio. She was part of a team that was going to oversee the completion of an undisclosed project that later reports said was a port of Minecraft: Story Mode for Netflix. But now, Noel claims it has laid her and her team off as well — although some people still remain at the studio.
Heeeeyyyy remember how there was going to be a skeleton crew staying on for a while and I was part of it? Nah, jk, we all just got laid off, too.
— Just Ro (@rnoelliams) October 4, 2018
On September 21, Telltale Games shocked fans by suddenly laying off 250 people. It also canceled all of its projects including the final season of The Walking Dead. But the company did say it would keep on a crew to finish a project.
“A majority of the company’s employees were dismissed earlier this morning,” reads a Telltale statement. “With a small group of 25 employees staying on to fulfill the company’s obligations to its board and partners.”
June 5th: The AI Audit in NYC
Join us next week in NYC to engage with top executive leaders, delving into strategies for auditing AI models to ensure fairness, optimal performance, and ethical compliance across diverse organizations. Secure your attendance for this exclusive invite-only event.
I’ve reached out to Telltale, its chief executive Pete Hawley, and multiple members of its board of directors to find out the current state of the company. I’ll update this post with any new information.
Telltale has yet to confirm this latest round of lay offs. As expected, though, Noel said that the studio did not provide her a severance just like the rest of the staff.
What happened at Telltale?
The studio’s sudden collapse is due to a funding deal not coming through, according to a source familiar with the matter. Telltale had a long, ongoing partnership with media company Lionsgate. That movie studio had provided funding for the developer and oversaw its shift in leadership, as detailed in former Telltale CEO Kevin Bruner’s lawsuit.
But Lionsgate was done pouring money into Telltale. Instead, both companies worked together to bring in a new undisclosed funding partner. That was not AMC or Smilegate, as other outlets are reporting. Discussions may have happened with those companies, but it was not the deal that Telltale was banking on.
And that deal fell apart. When it did, the studio ran out of money quickly.
Throughout this process, studio leadership did not make contingency plans if it couldn’t secure new funding. And, according to the affected developer, Hawley and the board of directors did not share details about the status of the studio.
Telltale’s owners and investors were playing an all-or-nothing game, and they were betting the livelihoods of their employees. They lost that bet, and now it’s the developers who are paying for it.
Corrected at 3:25 p.m. Pacific time to indicate that some people are still working at Telltale, according to Rachel Noel.
