Enginefall Developers Announce Layoffs but Confirm Development Will Continue

Developer Red Rover Interactive has announced a round of layoffs affecting its studios in Oslo, Norway, and Newcastle, UK, despite the recent success of Enginefall during Steam Next Fest. The company described the move as part of a broader restructuring effort aimed at securing the studio's long-term financial stability, stressing that development of Enginefall will continue as planned.

According to Red Rover Interactive, the restructuring is intended to place the company on a more sustainable financial footing as the multiplayer survival shooter enters its next stage of production. While the studio has not revealed how many employees are affected, it confirmed that impacted staff will receive assistance through a specialist recruitment agency to help them find new opportunities. The company also thanked departing team members for their contributions, noting that Enginefall would not have reached its current state without their work.

The announcement surprised many fans because Enginefall recently generated strong momentum. The game's public demo during Steam Next Fest attracted widespread attention, helping the title surpass 300,000 Steam wishlists while earning positive reactions from players and gaming media. Despite this success—and more than $20 million in funding secured over the past three years—the studio says reducing operating costs is necessary to ensure the project's long-term future.

For now, there is no indication that Enginefall has been delayed or canceled. Red Rover Interactive continues to target a 2026 PC release, although the studio has not commented on whether the restructuring could affect the development schedule. As the project moves toward launch, the developers say their focus remains on completing the game while supporting employees impacted by the restructuring.