Splitgate 2 Developer 1047 Games Faces Layoffs During Rocky Launch, Co-Founders Forgo Salaries to Focus on Project’s Next Phase

Splitgate 2 developer 1047 Games has announced layoffs affecting an unspecified number of employees, with co-founders choosing to forgo salaries to stabilize the studio’s future.

The free-to-play shooter, blending Halo-style gameplay with portals, launched amid controversy after co-founder Ian Proulx appeared at Summer Game Fest wearing a hat proclaiming ‘Make FPS Great Again.’ In his speech, Proulx criticized Call of Duty, a move widely seen as a promotional misstep.

Upon release, Splitgate 2 introduced a battle royale mode and a controversial $145 microtransaction bundle. The game peaked at 25,785 concurrent players on Steam, significantly lower than the original Splitgate’s 67,724 peak. Steam user reviews currently stand at ‘mixed.’

Steam statistics only tell part of the story, as Splitgate 2 also launched on consoles alongside PC. 1047 Games reported over 2.5 million players across platforms. However, the launch fell short of expectations. In an IGN interview post-launch, Proulx expressed surprise at the backlash, noting, “We didn’t anticipate this level of controversy and didn’t mean for it to happen.”

Now, 1047 Games has undergone layoffs, described as affecting “a small group” of staff in a LinkedIn post. The same post confirmed that co-founders Ian Proulx and Nicholas Bagamian will not draw salaries as the studio works to enhance the game.

Here’s the full statement:

Today, we said goodbye to a small group of valued 1047 Games team members. We’re refining the Splitgate 2 experience based on player feedback and reallocating resources to create the best possible game. We’re saddened by these departures and are actively supporting our teammates in finding new opportunities. Additionally, our co-founders Ian Proulx and Nicholas Bagamian have chosen to forgo salaries as we focus on delivering the next phase of the project. Thank you to those who’ve built with us — we’re heartbroken to part ways and wouldn’t be here without you.

To everyone playing Splitgate 2, we’re working tirelessly to deliver updates you’ll love. We’re committed to building this game for the long term.

While 1047 Games did not disclose the number of layoffs or specific individuals affected, several key staff members have shared their departures on social media. Meanwhile, Splitgate 2 recorded a 24-hour peak of 10,059 concurrent players on Steam, with 4,437 active players at the time of this report.

IGN’s review gave Splitgate 2 a 7/10, stating: “Splitgate 2 builds on its predecessor but doesn’t quite outshine it.”