Behaviour Interactive, the Canadian powerhouse behind the asymmetrical horror hit Dead by Daylight, has confirmed a round of layoffs affecting its mobile and external development teams. While the studio has not disclosed the exact number of employees let go, a spokesperson for the company cited a significant decline in the demand for external services and mobile projects as the primary driver behind the decision.
The studio, which was founded in 1992 and grew into one of the largest independent developers in North America, has long relied on a diverse business model. Before the massive success of Dead by Daylight, Behaviour operated largely as a work-for-hire entity, assisting industry titans like Ubisoft, Sony, and Nintendo. This latest reduction suggests that the “support” side of the industry is tightening its belt, leaving even established partners like Behaviour to scale back their operations.
In an official statement regarding the cuts, Behaviour Interactive noted that they do not foresee “comparable opportunities” in the near term for their external development wings. This shift in posture is particularly striking given the company’s recent aggressive expansion. Over the last several months, the Montreal-based developer acquired Darkest Dungeon creator Red Hook Studios and 7 Days to Die developer The Fun Pimps. These acquisitions pointed toward a studio looking to solidify its own intellectual property, perhaps at the expense of its legacy as a contract developer.
These layoffs arrive during a brutal period for game industry workers. Behaviour joins a growing list of studios, including Iron Galaxy, Ubisoft, and EA, that have trimmed staff in 2026 to navigate what many are calling permanent shifts in market conditions. For a company with over 1,200 employees, the move highlights the volatility of the current landscape, where even the ongoing success of a flagship title like Dead by Daylight cannot fully insulate a studio from broader economic pressures. Moving forward, the developer remains focused on its upcoming Serious Sam project and the continued evolution of its horror ecosystem.