This is the kind of thing everyone in the gaming industry hates to hear, even (I would assume) Telltale's rivals. I have worked in various aspects of the gaming industry for close to a decade and this kind of thing always bums everyone out. We all love games and most people I know in the industry will take pay-cuts, change cities, switch roles, whatever it takes to stay in the game business.
So this is a blow, especially when a company is having success like they have been having. It's a drag to see so many people get laid off especially after a recent string of hits, like Batman, GOT, Back To The Future, and more. How could this happen?, the people will wail. Then again, no one really knows what is going on behind the scenes except the company and their accountants.
Telltale claimed the lay-offs are a result of the studio's efforts to make itself "more competitive as a developer and publisher of groundbreaking story-driven gaming experiences with an emphasis on high quality in the years ahead." They went on to say that the company wants to focus more on internal projects and it means to make a move "to more proven technologies that will fast-track innovation in its core products."
“Our industry has shifted in tremendous ways over the past few years," said a statement from Telltale CEO Pete Hawley. "The realities of the environment we face moving forward demand we evolve, as well, reorienting our organization with a focus on delivering fewer, better games with a smaller team."
"I'd like to express our respect for all the contributions that these incredibly talented artists, storytellers and more have made to this company, and that this decision is in no way a reflection on the quality or dedication of their work. We have made available our full career assistance services to help our affected colleagues and friends - and their families - navigate this difficult transition as quickly as possible."
There are a lot of talented people at that studio and I wish them the best. Hopefully they can land on their feet.