Worker-run studio KO_OP confirms layoffs

KO_OP, the developer behind *Goodbye Volcano High* and *Young Suns*, announced it has laid off 13 employees to ensure its survival amid a challenging funding environment. The studio explained in a Bluesky post that securing new project financing has become significantly harder, forcing difficult operational decisions. Team leads and elected executives were among those affected, with the cuts made democratically to prioritize the studio's long-term viability over project expansion.

The studio emphasized that its members were kept informed about cash flow challenges and the impending shortfall well in advance. Despite the layoffs, KO_OP reassured impacted employees that profits from *Young Suns*—which launched on Xbox and is expanding to other platforms—will still be shared with them. This move reflects the studio’s commitment to transparency and equitable treatment of its workforce during financial strain.

KO_OP is now shifting focus to developing new projects and prototypes while continuing support for its multiplayer life simulator. The studio has not ruled out rehiring if funding is secured in the coming months, signaling cautious optimism about its future prospects. The decision underscores the broader struggles indie studios face in navigating an unpredictable funding landscape.

The layoffs come as part of a broader trend affecting the games industry, where studios are increasingly forced to make tough choices to survive. KO_OP’s democratic approach to decision-making highlights its unique worker-run structure, which prioritizes collective input in critical moments. The studio’s pledge to rehire reflects a commitment to rebuilding its team once financial stability is restored.