That's No Moon Lays Off Art Staff During 'Crossfire' Development
The Los Angeles-based AAA studio cuts technical and environmental artists following the reveal of its debut title.
Independent AAA studio That's No Moon has laid off an undetermined number of staff, according to reports from former employees. The reductions, which became public via LinkedIn on August 6, 2026, signal early instability for the Los Angeles-based developer.
Reports from IGN and Techora indicate the layoffs specifically targeted technical and environmental artists. While the studio has not officially disclosed the total number of impacted roles, the loss of specialized art talent comes at a critical juncture for the studio's primary project.
The Road to Crossfire
Founded in 2021 by industry veterans from Naughty Dog and Infinity Ward, That's No Moon was established to bring high-end production values to the independent space. The studio is currently developing "Crossfire," a narrative-driven, single-player tactical action-adventure game created in collaboration with Smilegate. Based on the established multiplayer "Crossfire" franchise, the new title was recently revealed at Summer Game Fest 2026 and is slated for release on PC, PlayStation 5, and Xbox Series X|S.
A central pillar of the game is its "Adaptive Cover" mechanic. Game Director Jacob Minkoff has stated that this system "fundamentally changes your relationship with the environment and becomes an active skill to master," highlighting the importance of the environmental design that the recently laid-off artists were tasked with creating.
Industry-Wide Instability
These cuts are part of a broader trend of volatility across the gaming sector. The industry has seen significant restructuring recently, including major layoffs at Xbox and Double Fine. For an independent studio like That's No Moon, which is working toward its first major AAA release, the loss of key technical and environmental art staff is particularly risky. Such reductions can lead to delayed development timelines or a decrease in the overall visual fidelity of the final product.
Looking Ahead
It remains to be seen how these staffing changes will affect the production schedule for "Crossfire." While the game's core mechanics and platform targets remain unchanged, the studio's ability to execute its ambitious environmental vision may be under pressure. Observers will be watching for updates from Smilegate or That's No Moon regarding the project's current status and whether further restructuring is planned as the game moves toward its launch.