Studio head Alx Preston wrote that the loss of the key publishing income left the company with no immediate financial prospects, forcing "nearly everyone at the studio" to be let go. He described the situation as "devastating" and pledged to provide as much support as possible to displaced staff, including assistance with job placement.
Preston appealed to the industry and community for help, asking anyone aware of openings for "extraordinarily talented, kind people" to reach out so the studio can coordinate referrals. He also thanked the team, fans, and the broader community for their contributions to the studio’s projects.
The latest cuts follow three rounds of layoffs over the past three years. An unspecified number of employees were let go in November 2024 as the early‑access launch of Hyper Light Breaker approached, with two additional rounds occurring in October 2025. The first round coincided with the conclusion of development on Hyper Light Breaker, which Preston said reflected broader forces beyond the studio’s control, such as shifts in funding, corporate consolidation and an uncertain environment for small studios.
A second wave of redundancies was reported just days before the launch of the studio’s new title, Possessor(s). One affected employee warned that by the time the game released, "I don't know if anyone who worked on the game will even be at the company anymore."
Preston acknowledged that navigating an increasingly challenging industry has been "extremely difficult" and admitted uncertainty about Heart Machine’s future. He added that the studio will continue to explore ways to survive while it still exists.
The series of layoffs underscores the precarious position of independent developers who rely on external publishing deals for cash flow. With the collapse of the latest deal, Heart Machine’s ability to fund ongoing projects and maintain staff has been severely compromised, raising concerns about the fate of its upcoming releases.