GameBaba Universe received a troubling anonymous email detailing an ongoing internal financial strain at Lemon Sky Studios. According to a memo shared internally by the company’s president, Kin-Wai Lau, it may be difficult for the studio to continue operating in 2 to 3 months.
Pictures from Lemon Sky Connect Fest (Photo credit: Lemon Sky Studios)
“According to [a memo from] the company’s President, Kin Wai Lau, that [was] shared internally, the studio is reportedly facing substantial internal financial strain and may have difficulty continuing operations over the next 2–3 months,” read the anonymous message.
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“One round of staff reductions just started weeks ago, where employees were asked to leave under terms perceived as unfavorable. This reportedly affected individuals with long tenure as well, who received minimal compensation.
“In addition, recent public statements about partnerships, future plans, and project progress may not align with internal conditions. A significant number of key contributors involved in the studio’s own IP project are no longer with the company, yet public messaging continues to present the project as operating normally.”
Lemon Sky Studios’ Thanksgiving message two days ago read, “2025 has been an amazing year full of legendary collaborations that we are deeply honored to have been a part of. There’s nothing more fulfilling to us than working with our partners to deliver happiness through the magic of games and animation.”
Just as the anonymous tip mentioned, Lemon Sky Studio’s public messages have been enthusiastic, rather than anxious. A week earlier, the studio also announced the launch of Marvel’s Deadpool VR for Quest 3/3S from Twisted Pixel Games, saying, “Our team supported the project with production-ready assets across key areas. We hope you all enjoy playing it as much as we have enjoyed making it!”
Three weeks ago, Lemon Sky Studios posted that it was hiring for the position of business development executive (Japanese market). GameBaba Universe visited the link and was greeted with “No longer accepting applications”. Also, LinkedIn informed us that only “7 people clicked apply”.
The last couple of public messages from Lemon Sky Studios have been positive, including the recently concluded Lemon Sky Connect Fest, which was tagged “Celebrating Creativity & Community”. This made it hard to believe the anonymous message we received, until we investigated further.
Lemon Sky Studios let go of 10+ employees a week ago
Judging from the double-digit layoff that happened at the studio just a week ago and the studio’s silence on the matter, the positive message from Lemon Sky Studios feels like a smokescreen.
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Upon further investigation, as the anonymous tip claimed, Gamebaba Universe discovered at least 10 posts from people who previously worked at Lemon Sky Studios—and some of them referenced the studio as their ONLY past experience. The layoff posts also started emerging about a week ago.
“Hi everyone! I’m seeking a new role and would appreciate your support,” wrote 3D Modeler Jessica G.F. Almost identical message was shared by Art Director CK Lum, 3D modeler William Chuarsa, 3D character artist Tommy Hartono, technical artist Jun Cong Lee, 3D animator Joel Lee, 3D modeler Siew Chiong Wong, 3D animator Stephanie Kua Soo Kuan, intermediate animator Nick Ho, and animator YeeZi Loo.
The near identical nature of the posts from the now former employees almost feels like there is a gag on the former employees controlling what they can say. The silence of the studio management on the emerging layoff posts is deafening.
On the 27th of March, around 50 people were laid off from Lemon Sky Studios. There was no official confirmation from the studio at that time, and it is unlikely that the recent wave of layoffs will be addressed.
