Major video game developer, Naughty Dog, known for creating 'The Last of Us', is set to reduce its workforce in 2023. The cuts will primarily affect contractors, with at least 25 of them losing their jobs by the end of October.

This revelation was made known by insider sources who spoke with Kotaku. They also disclosed that the layoffs mainly impacted the quality assurance team but some workers in the art department and production will also be affected. Unfortunately, the affected contractors have not been offered severance packages and were allegedly pressured into keeping the news of the layoffs under wraps.

This situation is part of a larger trend in the games industry, with several other companies announcing layoffs. For example, Activision Blizzard reportedly made cuts in its Hearthstone staff, labeling it as "organizational changes", while UK publisher Team17, known for popular games like 'Worms' and 'Overcooked', also faced layoffs, with its CEO, Michael Pattison, eventually leaving.

There is currently no confirmed reason for these layoffs, leaving many to hypothesize that the main objective is to cut costs. It is also unclear whether this will impact Naughty Dog's current projects, including the upcoming multiplayer version of 'The Last of Us'. Previously in May, it was reported that the project had been scaled back, with Destiny developer Bungie providing a critique that led to a smaller team continuing the work while Naughty Dog decided on the next steps. These decisions happen within a context of change in Naughty Dog's leadership, as co-president Evan Wells retired, leaving co-director of 'The Last of Us', Neil Druckmann, as the sole president.