Fishlabs Layoffs: German Studio Cuts Jobs [Confirmed]

German developer Fishlabs officially announced workforce reductions impacting its core development and support teams on October 16, 2026, according to verified reports from GamesIndustry.biz, driven by changing project requirements and evolving client demands. Although the Plaion subsidiary and Embracer Group portfolio studio did not specify the exact number of impacted employees, leadership emphasized that the cuts do not reflect individual staff performance. Fishlabs previously downsized by 50 roles during Embracer Group's 2023 restructuring program. Founded in 2004 by Michael Schade and Christian Lohr, the studio was acquired by Koch Media (now Plaion) in 2013 following bankruptcy proceedings. Founders Schade and Lohr subsequently departed in 2014 to establish Rockfish Games, which recently secured €8 million in German government funding. This latest downsizing aligns with wider macroeconomic pressures across the sector, reminiscent of challenges documented in reports like the [AI Game Development: New Studio Copyright Laws Hit [Update 2026]](/news/ai-game-development-copyright-laws-2026), as studios navigate evolving publisher expectations, rising operational overhead, and shifting global funding landscapes. Fishlabs reiterated its ongoing commitment to active partner projects, stating that supporting departing team members remains the immediate priority for management during this difficult transition period.