Behaviour Interactive, the studio behind Dead by Daylight, has confirmed layoffs affecting an undisclosed number of employees, citing a decline in demand for mobile and casual external development projects.
What happened
Behaviour Interactive announced it has parted ways with some employees, primarily within its mobile and casual external development departments. This move follows a period of decreased demand for such projects, leading the studio to conclude existing engagements. This news follows the company's recent acquisition of the 7 Days to Die franchise and the 2024 closure of its subsidiary, Midwinter Entertainment.
How many employees affected
The exact number of employees affected by these layoffs has not been disclosed. Behaviour Interactive's official website indicates it employs over 1,200 people across its various offices as of March 2026.
Why layoffs happened
Behaviour Interactive stated that a portion of its business focused on external development partnerships. In recent months, demand for mobile and casual external development projects declined, leading the company to reduce its workforce in these areas.
Company background
Founded in 1992 as Megatoon, Behaviour Interactive is a Canadian developer and publisher. It initially operated as a work-for-hire entity. In 2016, Behaviour Interactive released its most successful title, Dead by Daylight, which has garnered over 70 million players globally. The company maintains offices in Montreal, Vancouver, Toronto, Rotterdam, and the United Kingdom.
Industry impact
The layoffs at Behaviour Interactive reflect a specific market shift within the gaming industry, particularly a decline in demand for mobile and casual external development projects. This highlights the evolving landscape for studios reliant on external partnerships.
What's next
While the layoffs impact specific departments, Behaviour Interactive's flagship title, Dead by Daylight, continues to perform well, with new crossover content announced. The company also recently acquired the 7 Days to Die franchise and is involved in a new Serious Sam title, suggesting a shift in business focus.