Warner Bros Discovery Inc’s (NASDAQ:WBD) NetherRealm Studios, the renowned developer behind the Mortal Kombat franchise, is experiencing significant upheaval with a recent round of layoffs and the closure of one of its prominent mobile games.

Layoffs And Mobile Team Shutdown

Recent reports from video game forum ResetEra (via IGN) indicate that NetherRealm has laid off numerous employees from its mobile team.

See Also: Mortal Kombat 1 Unveils Final DLC Character Takeda In Gameplay Trailer

This team managed live services across several mobile games, including Mortal Kombat Mobile, Injustice 2, and Mortal Kombat Onslaught. Affected developers have reported the entire mobile team has been disbanded, which signifies a major strategic pivot for the studio.

In an official statement shared via X (formerly Twitter), the Mortal Kombat: Onslaught team announced that the game would be shutting down in October 2024, just a year after its launch.

The announcement read: “It has been an honor creating this game for our Kommunity, and we appreciate the enthusiasm from our fans. In the coming weeks we will share specific timing of the close of the game.”

We are sorry to inform you that Mortal Kombat: Onslaught will close its operations in October. It has been an honor creating this game for our Kommunity, and we appreciate the enthusiasm from our fans. In the coming weeks we will share specific timing of the close of the game.

— Mortal Kombat: Onslaught (@mkonslaught) July 18, 2024

Recent Updates And Future Plans

Despite the closure of Mortal Kombat: Onslaught, there have been recent updates to NetherRealm's other mobile titles. Mortal Kombat Mobile received a significant update introducing the character Spawn, with plans for additional characters like Onslaught Jax and MK1 Kenshi.

This update occurred just a day before the news of the layoffs, suggesting a continued investment in their existing mobile properties, at least in the short term.

Industry-Wide Challenges

The layoffs at NetherRealm come at a time when the broader video game industry is grappling with economic pressures.

Over the past two years, thousands of jobs have been lost across major gaming companies. Microsoft Corp. (NASDAQ:MSFT), for instance, announced 1,900 job cuts in its gaming division this year, while Sony Group Corp. (NYSE:SONY) reported 900 layoffs.

Many AAA publishers are also implementing significant reductions in their workforce, reflecting the current financial strain on the industry.

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Photo: Mortal kombat: onslaught