Iron Galaxy announces massive layoffs after Tony Hawk's Pro Skater 3 + 4

The video game industry has taken another shocking turn, with Iron Galaxy, the studio responsible for the successful remaster of Tony Hawk's Pro Skater 3 + 4, announcing that it will lay off up to 90 employees. The decision, announced on April 17, 2026, reflects the ongoing challenges and changes within the sector since 2020.

About Iron Galaxy

Iron Galaxy is a Florida-based game developer founded in 2008. The company gained recognition by partnering with other studios to bring their games to new platforms. Some of the well-known franchises Iron Galaxy has worked with include Killer Instinct, Batman: Arkham, and Borderlands. The studio also released its own IP, Rumblerverse, in collaboration with Epic Games, but the live-service game was taken offline within a year.

The impact of the layoffs

The layoff announcement follows the release of Tony Hawk's Pro Skater 3 + 4, which received generally positive reviews. Iron Galaxy said changes in the video game market forced it to make painful decisions about its workforce. The studio noted that it was impossible to maintain the team size it had earlier in the year, even after earlier layoffs in 2025, when it had to let go of 66 employees.

Adapting to new market conditions

The changes in the game industry have been significant. Iron Galaxy has noted that players are consuming games in new ways and that publishers are using different criteria when deciding whether to invest in game development. The studio also addressed this issue in messages to colleagues and partners across the industry. It said it must adapt to current market conditions as a permanent reality, which has led to the need to reduce staff once again.

The layoff announcement raises concerns about Iron Galaxy's future as it navigates an increasingly volatile market where securing outside investment and creating new hits has become more difficult. The studio has expressed concern about the loss of talent and the long-term impact that could have.