MindsEye Developer Build A Rocket Boy Reportedly Lays Off 170 Employees Following Controversial Update and Legal Turmoil

The Third Wave – What Happened and Who Was Affected

The layoffs, which occurred in the past week, represent the largest single reduction in the studio's history. Build A Rocket Boy, which once employed roughly 250 developers, now operates with a skeleton crew of approximately 80 individuals. This marks the third round of layoffs in 12 months, signaling a pattern of instability and poor financial management that has left the studio's future uncertain.

The layoffs cap a brutal six-month spiral: March saw the IO Interactive partnership collapse; late April brought the surveillance lawsuit; April 28 marked the controversial update; and now, the studio has shed 68% of its workforce.

Former employees have confirmed the scale and scope of the cuts through LinkedIn posts and Discord messages. Affected roles include level designers, audio designers, QA analysts, and the social team. One ex-staffer posted on LinkedIn, "I'm one of the 170 let go this week. The studio is unrecognizable from what it was two years ago." Another former QA analyst wrote on Discord, "We were told the studio was in a strong position. Then came the emails. No warning, no severance package to speak of."

The layoffs have been described as "brutal" and "disorganized" by multiple sources, with some employees learning of their termination through automated notifications rather than direct communication from management. The reduction from roughly 250 to 80 developers is a staggering 68% cut, leaving the remaining team to manage a live-service game with minimal resources.

The "Blacklisted" Update – Parody or Provocation?

The layoffs come hot on the heels of MindsEye's Update 7.1, released on April 28, which introduced the "Blacklisted" mode—a direct parody of alleged real-life attacks against the studio and its game. The update included satirical elements that mocked what CEO Mark Gerhard previously described as "overwhelming evidence of organized espionage and corporate sabotage." In a statement to the press, Gerhard claimed the studio had identified "bad actors" attempting to undermine MindsEye through review bombing, coordinated negative press, and even "industrial espionage."

The "Blacklisted" mode features exaggerated caricatures of these alleged threats, including in-game enemies modeled after anonymous online critics and "saboteurs" who attempt to corrupt the game's narrative. While some players saw this as a creative and defiant response to external pressure, others viewed it as tone-deaf given the studio's internal turmoil. One Steam reviewer wrote, "The update is funny, but it's hard to laugh when the studio is bleeding talent." The timing of the update—released just days before the layoffs were confirmed—has drawn particular criticism, with former employees noting that development resources could have been better allocated to retaining staff or improving the game's core experience.

The Collapse of Key Partnerships and Legal Challenges

Build A Rocket Boy's troubles extend far beyond the layoffs. In March, the studio's original publisher, IO Interactive, ended its partnership and canceled a planned Hitman crossover DLC. The partnership had been announced with much fanfare, promising a unique integration of MindsEye's narrative-driven open world with IO Interactive's signature stealth mechanics. The cancellation left the studio without a major backer and forced a pivot to self-publishing, a move that sources say contributed to the financial strain.

Then, in late April, staff launched legal proceedings against the studio, alleging management used Teramind AI software for surveillance without disclosing data collection or usage. According to court documents filed by former employees, the software tracked keystrokes, screenshots, and even webcam activity, all without proper notification or consent. One source familiar with the case told Kotaku, "It was a surveillance state. We had no idea our every move was being monitored. It felt like working in a prison."

The irony is stark: the studio's claims of external sabotage—alleged orchestrated attacks by competitors or critics—contrast sharply with internal allegations of mistrust and overreach. While CEO Mark Gerhard has maintained that the studio is the victim of "organized espionage," the legal proceedings suggest that management itself may have violated employee rights. Build A Rocket Boy did not respond to requests for comment by press time.

The Game's Reception and the Developer's Defense

While the studio's leadership battles external and internal crises, the product itself—MindsEye—has struggled to find its footing in the market. The game launched on June 10, 2025, to a lukewarm reception. It holds a 39 Metacritic score on PC, with critics citing "generic gameplay loops," "technical issues," and "confusing narrative framing." Steam reviews are overall Mixed, though recent reviews have shifted to Mostly Positive, suggesting that recent updates have improved the experience for some players.

Ex-lead animator Chris Wilson, who was among those laid off, defended the development team against the studio's narrative of sabotage. "The development staff did all that they could and tried their hardest to make it something very, very special," Wilson wrote in a public statement. "The problems with MindsEye aren't the result of external attacks—they're the result of mismanagement, crunch, and a lack of clear direction from the top."

Wilson's comments highlight a growing disconnect between the studio's official narrative and the reality on the ground. While management continues to blame external forces, former employees point to internal dysfunction as the root cause of the game's struggles. The layoffs, the publisher breakup, and the surveillance lawsuit all suggest a studio that lost its way long before the "Blacklisted" update ever went live.

The story of Build A Rocket Boy and MindsEye serves as a cautionary tale about the perils of mismanagement, overreach, and misplaced blame. With 170 employees out of work, a publisher partnership dissolved, and a surveillance lawsuit pending, the studio's future hangs in the balance. For the remaining 80 employees, the road ahead is uncertain. MindsEye's live-service model requires constant updates, but with a skeleton crew and no publisher backing, the question isn't whether the game will survive—it's whether the studio will. The "Blacklisted" update may have been intended as a defiant parody, but the reality is that the studio's biggest threats appear to have come from within—and the cost has been borne by the developers who tried their hardest to make something special.