Netflix to close LA studio Night School, Helsinki’s Moonloot and cut internal game teams

Netflix is to close two game studios and make further staff cuts to its internal game teams, according to a Game File scoop.

The studios in question are LA-based Oxenfree maker Night School Studio and Helsinki studio Moonloot, which appeared to be developing an Animal Crossing-like game. Game File also reported that an unknown number of staff will be cut from elsewhere in Netflix’s internal games division.

A spokesperson for the streaming giant told Game File: “We see an opportunity to be more focused in our execution, so we are making organizational changes to the business to match those priorities.”

The cuts follow mass layoffs at the development studio behind Netflix’s FIFA World Cup tie-in, Refactor. Some reports suggested that up to 85% of staff have lost their jobs.

Netflix has also acquired then closed Boss Fight Studios, whose most recent project was free to play Fall Guys-like party platformer Squid Game: Unleashed.

It also bought indie puzzle studio Spry Fox back in 2022, only for the studio to go independent again back in December 2025.

Perhaps most notoriously it set up, then closed a triple-A game development studio packed with big-name talent.

Netflix has also seen its fair share of strategy and exec changes; former Epic Games exec Alain Tascan replaced former Netflix games boss Mike Verdu, who was hired to kickstart Netflix’s gaming efforts back in 2021.

At GDC 2025, new Netflix games boss Tascan said that after his predecessor Verdu built out a catalogue of mobile games that catered to all tastes, the streamer would be more focused onparty games, kids titles and big-name IP in future.