[UPDATED] Telltale Games Hit By Massive Layoffs Amid Speculation of Closure

By Mark Delaney,
Update [6:30 pm PDT]: Multiple outlets are now reporting that sources close to Telltale are saying The Walking Dead: The Final Season will not be completed as planned and will abruptly conclude after next week's release of episode two. The 25 employees that remain may, in fact, be there to finish work on Netflix and Telltale's Minecraft animated series. That would make sense given Telltale's official statement referencing their intentions to "fulfill the company's obligations to its board and partners."

Consider this rumor for now, but as more and more reputable outlets report this new twist to the story based on whispers from recently let go employees, we wanted to pass it along. We'll continue following the story as it develops.

Update [2:40 pm PDT]: Telltale has issued the following statement via tweet, confirming the layoffs and a difficult past twelve months for the studio:

Original Story: Telltale Games has been struck by a large number of company layoffs, according to reports, and some have speculated the studio may close completely. The Verge first reported the California-based studio known for their adventure games such as The Walking Dead and Minecraft: Story Mode would be laying off all but 25 employees who would remain on to finish The Walking Dead: The Final Season.

Gamasutra also reported the studio would be shuttering completely, though they've since updated their story via Twitter — the site is currently down and the linked story will be updated when it returns — to say that the 25 employee figure is accurate according to "sources close to Telltale."

According to the same sources, all other projects by the studio have been canceled. Today's news follows less than a year after Telltale let go of 90 employees, or 25% of their studio. With all but two dozen remaining on to finish The Walking Dead, many are wondering what the studio's fate may be once the season has wrapped up in December. We'll update this story as it develops.

We wish the developers well should they be affected by today's layoffs.
Mark Delaney
Written by Mark Delaney
Mark is a Boston native now living in Portland, Oregon. He has written for GameSkinny, Gamesradar and the Official Xbox Magazine. He runs the family-oriented gaming site Game Together.