KEY POINTS
- Ashes of Creation layoffs include a confirmed round affecting nine employees and later reports of much larger reductions.
- Founder Steven Sharif resigned after the board assumed control of the company, according to his public statements.
- Development status remains officially unclarified amid legal and governance constraints.
Intrepid Studios, the California based developer behind the long running MMORPG “Ashes of Creation,” is facing heightened scrutiny after reports of layoffs and the resignation of founder and chief executive officer Steven Sharif, raising questions about governance and development continuity in January 2026.
The situation at Intrepid Studios has drawn global attention within the gaming industry because “Ashes of Creation” is one of the most heavily crowdfunded MMORPG projects of the past decade.
The combination of workforce reductions and leadership upheaval places the studio at a critical juncture as it approaches Early Access milestones.
Intrepid Studios was founded in 2015 and announced “Ashes of Creation” the following year.
The project raised more than $3.25 million through crowdfunding in 2017, positioning itself as a community driven alternative to traditional publisher funded MMORPGs.
A closed alpha launched in 2021, followed by a technical transition from Unreal Engine 4 to Unreal Engine 5 and a second alpha release on Steam in 2025.
On Jan. 23, 2026, Intrepid confirmed targeted layoffs affecting nine employees from a workforce of about 250.
In a Reddit post, Sharif described the move as a routine adjustment similar to a March 2025 reduction involving thirteen staff members.
Days later, Sharif announced his resignation in a message on the game’s official Discord server, stating that control of the company had shifted to the board of directors. He said the board directed actions he could not ethically support.
“The loss of founder leadership during a prolonged development cycle introduces operational risk, even if funding is stable,” said Joost van Dreunen, lecturer on the business of games at New York University.
He noted that governance disputes often delay production timelines. Megan Condis, assistant professor of communication studies at Texas Tech University, said MMORPG communities are uniquely sensitive to transparency.
“When development spans nearly a decade, communication gaps can quickly erode trust,” she said.
Sharif said on Discord that after his resignation, “much of the senior leadership team resigned,” adding that the board then issued WARN Act notices. Such notices typically indicate large scale layoffs.
Reports from former employees suggest more than 200 developers may have been affected, though Intrepid has not publicly confirmed that figure.
Stacey M., a human resources professional with prior experience at Intrepid, Sony Online Entertainment and Razer, wrote on LinkedIn that she was offering support to affected workers. “Game development is volatile, and people deserve stability and clarity,” she said.
Daniel Ahmad, director of research and insights at Niko Partners, said workforce volatility has become common in the sector.
“Long development cycles combined with rising costs make studios vulnerable when governance disputes arise,” he said.
Intrepid Studios has stated that development on “Ashes of Creation” continues, but no updated roadmap has been released since the leadership changes.
Sharif said he could not provide further details due to ongoing legal and governance matters. The board has not issued a public statement addressing the reported scale of layoffs.
The Ashes of Creation layoffs underscore the fragile balance between community funded ambition and corporate governance realities.
As Intrepid Studios navigates leadership restructuring and workforce uncertainty, the project’s long term trajectory will depend on transparency, legal resolution and the studio’s ability to retain development momentum.
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