Reports from former employees have revealed that NetherRealm Studios, the developer behind popular fighting games like Mortal Kombat and Injustice, has implemented mass layoffs, primarily affecting its mobile team. TechRaptor first reported on the layoffs, noting that quality assurance (QA) analyst Tony Lazzara posted on LinkedIn about the closure of the entire team. While Lazzara did not disclose the exact number of employees impacted or whether the layoffs were limited to the mobile division, he did confirm that “a ton of very talented people were put out of work.”
Another former NetherRealm QA analyst, Samantha Edward, corroborated these reports, stating that the move impacted “most of my colleagues” on the mobile team. This team was responsible for the development of 2023’s Mortal Kombat: Onslaught and Mortal Kombat Mobile. Despite these layoffs, NetherRealm continues to support its other titles. Mortal Kombat 1 recently added Takeda Takahashi as a playable character and will be featured at the Evo games tournament, kicking off this weekend.
The extent of NetherRealm’s departure from the mobile gaming market remains unclear. It’s possible that these layoffs are a consequence of financial losses at Warner Bros. Games, which in part resulted from the disappointing performance of Suicide Squad: Kill the Justice League. In March, J.B. Perrette, head of the division, announced a shift in focus towards more profitable IPs, including Hogwarts Legacy, Harry Potter, MultiVersus, and games utilizing live-service, free-to-play, and mobile models.
Neither NetherRealm Studios nor Warner Bros. Games has officially commented on the matter. Digital Trends has reached out to NetherRealm Studios for comment and will update this story as soon as a response is received.
