BioShock 4 studio reportedly facing layoffs as former Diablo boss takes over amid "development turmoil"

UPDATE 20/8/2025: 2K Games has confirmed recent reports of layoffs at BioShock 4 developer Cloud Chamber, sharing an internal memo with Eurogamer in which 2K president David Ismailer told staff the publisher would be "reducing the size of the development team" as it looks to "rework certain aspects" of the purportedly troubled project.

"BioShock is woven deeply into the fabric of 2K," Ismailer wrote in his memo. "It's one of our most beloved franchises and respecting its legacy and meeting our fans' expectations is critical to its future success.

"Work on the next BioShock game has been underway for several years. While we're excited about the foundational gameplay elements of the project, we've made the decision with studio leadership to rework certain aspects that are core to a BioShock game, and in doing so are reducing the size of the development team to focus on this work and give the game more time in development.

"I know this is tough news for everyone. If your role is being affected, you'll hear from your manager or studio leadership today with details on severance, career services and support resources. There is no easy way to do this, but we hope to do whatever we can to support you through this. I want to thank each of you for your dedication and hard work."

Ismailer then confirmed former Diablo boss Rod Fergusson's appointment as new studio head, concluding, "I recognise that today is a day of mixed emotions. We're excited to have Rod joining us, and are equally grateful to everyone at Cloud Chamber who has helped us get this far. These changes are rooted in 2K's firm confidence in BioShock as one of the most beloved franchises, and our commitment to deliver the best game in franchise history."

ORIGINALY STORY 19/8/25: BioShock 4 developer Cloud Chamber is reportedly laying off an "unspecified" number of employees. The news comes as former Diablo boss Rod Fergusson joins as new studio head following claims of development "turmoil".

Word that BioShock 4's development had running into difficulties first emerged earlier this month when Bloomberg's Jason Schreier reported the project had failed an internal review at publisher 2K Games, with particular criticism being levied at its narrative. Soon after, studio head Kelley Gilmore was ousted and staff were warned the team needed to "become more agile and efficient", leading to concerns layoffs were imminent. And now Schreier reports job cuts affecting an "unspecified number of staff" at Cloud Chamber have begun. Eurogamer has contacted 2K Games for comment.

Amid all this, former Diablo boss Rod Fergusson has now been revealed as Cloud Chamber's new studio head. Fergusson most recently served as general manager of the Diablo franchise at Blizzard, having joined the company in February 2020, but was confirmed to be "stepping away" from his position earlier this month. Notably, Fergusson played a key role in the release of the third BioShock title, BioShock Infinite, joining Irrational Games to help the project over the finish line after its own difficult development.

Confirming his new role at Cloud Chamber on social media, Fergusson wrote, "Some of you guessed it, I'm returning to 2K to lead a series that means a lot to me as the new Head of the BioShock Franchise. I'll be heading up Cloud Chamber and overseeing development of the next BioShock game, along with franchise extensions like the in-development Netflix movie.

"While I'm excited to get started in the coming weeks, I recognise the studio restructuring is a difficult time for the team. I'm deeply grateful for the work done so far, and I'm committed to building a BioShock game we'll be proud of and that our players will love."

BioShock 4 was confirmed to be in development in 2019, with its release said to be "several" years away at the time. 2K Games has, however, been attempting to get a sequel off the ground for over a decade - back in 2014, the publisher announced its now-defunct 2K Marin studio would be responsible for the future of BioShock after series creator Ken Levine departed Irrational Games to found Ghost Story Games. Little has been heard of the project since its shift to Cloud Chamber, but in 2021 it was reported BioShock 4 would take place in a fictional Antarctic city set sometime during the 1960s, roughly concurrent with the events of BioShock 1 and 2.

As for Levine and Ghost Story Games, the studio's next project, Judas, is still without a release date - but it seems likely the BioShock-style shooter will emerge well before 2K's next official BioShock game.