Ashes Of Creation Faces Crisis After Leadership Exodus

It’s been a tumultuous start to 2026 for Intrepid Studios, the developer behind the ambitious MMORPG Ashes of Creation. What began as a round of targeted layoffs in January has now escalated into a full-blown crisis, with the studio’s future—and that of its highly anticipated game—hanging in the balance. The drama unfolded over a matter of days, leaving fans, employees, and industry watchers scrambling to make sense of the rapidly shifting landscape.

On January 23, 2026, Intrepid Studios announced the layoff of nine employees from its roughly 250-person team. According to Filmogaz.com, the move was described by studio head Steven Sharif as a “targeted adjustment” rather than a sign of deeper trouble. “Such decisions, while difficult, are sometimes necessary for targeted team adjustments,” Sharif explained in a Reddit post, referencing a similar round of layoffs in March 2025 that saw 13 staff depart. The message was clear: this was business as usual in the volatile world of game development, not a harbinger of doom.

Yet, behind the scenes, trouble was brewing. Just days later, on January 31, 2026, Sharif himself resigned in protest, citing ethical disagreements with the Board of Directors after control of the company shifted away from him. “Control of the company shifted away from me, and the Board began directing actions that I could not ethically agree with or carry out. As a result, I chose to resign in protest rather than lend my name or authority to decisions I could not ethically support,” Sharif stated, as reported by MMORPG.com. His resignation was soon followed by much of the senior leadership team, a fact confirmed by Communications Director Margaret Krohn via LinkedIn.

The shockwaves didn’t stop there. In a message shared on the official Ashes of Creation Discord and relayed by community sources, Sharif lamented the uncertainty now facing the staff. “What I can say is that the developers and staff acted in good faith and deserved better than the uncertainty they are now facing. I am incredibly dismayed by the situation.” The sense of dismay rippled through the community, as players and fans took to Reddit and social media to express their concerns, fears, and—sometimes—gallows humor about the fate of their beloved MMO.

With the leadership vacuum widening, the Board of Directors moved swiftly, issuing WARN Act notices to employees and initiating what has been described as a mass layoff. According to Theory Forge, a prominent Ashes of Creation content creator, the WARN Act letter was delivered by First Class mail and takes effect on February 2, 2026. The letter reportedly states that Intrepid Studios cannot meet its recent payroll period, fueling speculation that the studio could shutter by the end of business on February 2. MMORPG.com reported that the letter, as read aloud on Theory Forge’s stream, paints a dire picture: “the studio is going to be closing by end of business on Monday.”

Meanwhile, LinkedIn became a hub of activity, with multiple Intrepid Studios employees updating their profiles to signal they were “open to work.” Stacey M., a human resources professional with experience at Intrepid, Sony Online Entertainment, and Razer, reached out on LinkedIn to offer support to those affected, reflecting a broader understanding of the industry’s harsh realities. “Layoffs are never easy, but support from the community and colleagues can make a difference,” she wrote, echoing the sentiments of many in the gaming world.

For fans of Ashes of Creation, the news has been particularly hard to swallow. The game, which promised to carve out a unique niche in the crowded MMORPG landscape, was approaching its Early Access phase—a critical milestone for any crowdfunded project. Now, with the studio’s future in doubt, questions abound: Will the Early Access build ever see the light of day? What happens to the Kickstarter backers, many of whom were promised refunds if the game failed to launch? And, perhaps most painfully, will the years of work poured into Ashes of Creation simply vanish overnight?

Industry experts have been quick to point out that layoffs and leadership changes are not uncommon in game development, especially for projects as large and complex as MMORPGs. As Filmogaz.com noted, “adjusting team size is a regular part of the game development process, which does not inherently signify financial or operational difficulties.” But the speed and scale of this latest upheaval have left even seasoned observers rattled. The resignation of a studio’s creative director and co-founder, followed by the exodus of senior leadership and a mass layoff, is hardly routine—even in an industry known for its volatility.

The situation has also sparked broader conversations about governance, transparency, and the precariousness of crowdfunded game development. Sharif’s statement that he could not “ethically agree with or carry out” the Board’s directives raises uncomfortable questions about the balance of power between creative visionaries and corporate overseers. For many backers and players, the very soul of Ashes of Creation seemed tied to Sharif’s leadership; his departure leaves a void that will be hard to fill.

As speculation swirls about the studio’s imminent closure, there’s a palpable sense of loss—not just for the game itself, but for the community that grew up around it. The Ashes of Creation subreddit and Discord channels have become places of mourning and solidarity, as fans share memories, hopes, and, in some cases, resignation. “We knew the road would be tough, but this is heartbreaking,” one Redditor wrote, capturing the mood of many.

For now, the fate of Ashes of Creation hangs in the balance. With the WARN Act notice set to take effect and the studio’s ability to meet payroll in question, the coming days will be critical. Whether the game can survive this storm—or if it will join the ranks of ambitious MMOs that never made it to launch—remains to be seen. What’s clear is that the story of Intrepid Studios serves as a stark reminder of both the promise and peril that define the world of game development.

As the dust settles, all eyes remain on what’s left of the team and the Board of Directors. The community, for its part, continues to hope for a miracle—while bracing for what might be the end of a dream years in the making.