Funcom Layoffs Hit Dune: Awakening as Studio Shifts Focus

Did you hear the news about Dune: Awakening? Funcom just announced layoffs as it shifts gears to focus on its two ongoing online projects: Conan Exiles and Dune: Awakening itself. But wait, isn't Dune: Awakening the new one? Yes, and that's exactly why this stings.

The studio is moving from full production into long-term post-launch development and operations for Dune: Awakening. According to CEO Rui Casais, that transition requires a different organization. In plain terms: layoffs. "While we would have wanted everyone who helped build Dune: Awakening to continue with us, we cannot sustain the size and structure required during peak development as we move into this next phase," Casais said in a statement to GamesIndustry.biz.

How many people are affected? That's still unclear. Casais added that his focus is on ensuring the process is as supportive as possible and treating affected colleagues with respect and transparency. It's a tough pill to swallow, especially since Dune: Awakening just launched its single-player mode and console release. This isn't a dead game by any means, but that apparently isn't enough to keep the team at its peak size.

This isn't the first round of layoffs for Funcom, either. Last October, the team lost "cherished colleagues" in a similar situation. Back then, the studio also acknowledged Dune: Awakening's "incredible potential" and called it "the biggest release we've had in our 32-year long history of making great games." So while the game may be a hit, the business side is still making hard calls.

On top of the layoffs, there's a leadership shake-up. Casais is stepping down at the end of 2026 after 11 years as studio lead. Chief product officer Scott Junior will take over his role. That's a big change for Funcom, which has been steering both Conan Exiles and Dune: Awakening.

So what does this mean for you as a player? Dune: Awakening isn't going anywhere. The pivot to post-launch development means the game will continue to be supported, but the team behind it is shrinking. It's a reminder that even successful games face behind-the-scenes challenges. Funcom says it's committed to treating everyone affected with respect, but it's still a difficult moment for the developers.

What do you think about these layoffs? Are you still excited to dive into Dune: Awakening's future updates? Let us know in the comments.