Polish game developer People Can Fly has officially announced the cancellation of two major projects and plans to downsize its teams. The Warsaw-based studio cited communication breakdowns with publishers and financial difficulties as the primary reasons for this decision. This marks the second round of layoffs for the studio in less than six months.

Known for acclaimed shooters like Bulletstorm and Outriders, People Can Fly has faced a series of setbacks in recent years. In April 2024, the studio canceled Project Dagger, a co-op action RPG in development for several years, after failing to secure a new publishing partner following its split from Take-Two Interactive in 2022. Later that year, in December 2024, over 120 employees were laid off, and Project Victoria was suspended while Project Bifrost was scaled back.

Despite the December layoffs, People Can Fly's financial struggles persisted. CEO Sebastian Wojciechowski recently announced additional layoffs and downsizing in a public statement. According to Wojciechowski, Project Gemini was shelved due to the publisher's failure to provide a new content agreement and a general lack of communication about the game's future. While the publisher was not named, reports suggest it was Square Enix.

In addition to Project Gemini, Project Bifrost—a rumored VR game—was also canceled. An internal financial review revealed that the studio lacked the necessary funding and resources to continue its development. Wojciechowski emphasized that these cancellations require a major restructuring, including further layoffs. The exact number of affected employees was not disclosed, but the CEO expressed regret and gratitude for their contributions.

The recent wave of layoffs at People Can Fly reflects a broader trend in the gaming industry, with companies like Microsoft, EA, and Eidos Montreal also cutting jobs. Despite these challenges, People Can Fly remains involved in promising projects. The studio is co-developing Gears of War: E-Day with The Coalition and has partnered with Sony to work on Project Delta, a new game based on an undisclosed PlayStation IP.