New World Interactive (NWI), well-known for its FPS Insurgency series, has been hit by layoffs following its parent company Embracer Group's restructuring. Initially acquired by Embracer in 2020, NWI has faced tough times amidst Embracer's debt struggles, which has led to numerous job cuts and studio closures over the past six months. Despite rumours of a complete shutdown, it's been confirmed that only a portion of the studio faced layoffs.

NWI, famed for transforming their popular mod Insurgency: Modern Infantry Combat into a fully-fledged game, has been supporting their recent title Insurgency: Sandstorm with ongoing updates. While Insurgency's development will continue, an unannounced project has been cancelled, as revealed by affected employees in a LinkedIn post. The layoffs and project cancellation are part of Embracer's larger pattern of layoffs in various studios it owns, totaling over 900 affected employees.

Despite these setbacks, continued support and development from NWI signify that the studio is not closing down entirely, and fans can still expect further content updates for Insurgency: Sandstorm.

What is happening to New World Interactive and its games like Insurgency: Sandstorm?

New World Interactive has faced layoffs as part of Embracer Group's restructuring plans, but Insurgency: Sandstorm will continue to receive support and updates. An unannounced project, however, has been cancelled.