According to Sega, it will “implement reduction of various fixed expenses” at Hyenas developer Creative Assembly. Unfortunately, that sounds like corporate jargon for “layoffs” at the studio, also known for Total War and Alien: Isolation.

Sega also braced investors for a loss in the current fiscal year. “As a result of implementation of the structural reform described above in Consumer area, we expect to record losses of approximately 14.3 billion yen for the fiscal year ending March 31, 2024,” Sega wrote. In a statement to Engadget, Creative Assembly confirmed the beginning of layoff discussions. “Creative Assembly, part of Sega Europe, has announced the beginning of a redundancy consultation process, alongside ending development of Hyenas,” the developer wrote. “This decision affects areas of its UK operations, which may result in job losses.”

Creative Assembly staff allegedly learned about the game’s cancellation today at the same time Sega issued its statement, according to IGN. Yanking Hyenas so close to its scheduled launch was reportedly a shock to employees at the UK-based developer, although there was apparently internal concern at the studio about the game’s prospects. IGN’s sources say Creative Assembly employees face redundancy but also expect company-wide cuts at Sega.

Announced in 2022, Hyenas was billed as a team-based extraction shooter for PlayStation, Xbox and PC, with players looting coveted pop-culture objects in wild zero-gravity environments. The over-the-top multiplayer title completed a closed beta earlier this month, dropped its final trailer in August and was still slated for a 2023 launch before today’s news.

Creative Assembly says it will try to reassign employees when possible. “Our people-first approach remains foundational to how we operate; the priority is to work with those whose jobs are at-risk and re-allocate them to other available opportunities at CA wherever possible,” a Creative Assembly representative wrote in an emailed statement to Engadget. “We are absolutely committed to delivering more exciting game experiences long into the future, which will delight both current and potential players all over the world.”

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Eidos will reportedly focus instead on “an original franchise.” Bloomberg’s sources say the Deus Ex game was scheduled to start production later this year. The franchise’s most recent mainline installment was 2016’s Deus Ex: Mankind Divided.

After aggressively growing through acquisitions during the pandemic, Embracer Group entered a turbulent period last year. The company announced a restructuring plan in June 2023 after an unnamed partner pulled out of a planned deal that would have brought in $2 billion over six years. Axios later reported the mysterious investor was Savvy Games Group, which the Saudi government funds.

In August, Embracer announced the closure of Volition, the studio behind the Saints Row series. The parent company laid off about 900 employees in September and another 50 workers at Chorus developer Fishlabs. Earlier this month, Embracer shuttered Lost Boys Interactive, makers of Tiny Tina’s Wonderland — pinning the blame on “headwinds facing the industry right now.”

Embracer says the restructuring phase will run until the end of March. The company claims it will provide regular updates on the process, including when it publishes its next quarterly report on February 15.

Alongside the alleged Deus Ex cancellation, Eidos confirmed it let go of 97 employees from development teams, administration and support services. “The global economic context, the challenges of our industry and the comprehensive restructuring announced by Embracer have finally impacted our studio,” Eidos wrote in a statement.

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