Update, Wednesday August 20, 2025: 2K Games has confirmed it has "reduced the size of the development team" working on BioShock 4.
Sharing an internal Cloud Chamber memo with our sister site, Eurogamer, 2K president David Ismailer told staff "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."
"BioShock is woven deeply into the fabric of 2K," Ismailer wrote. "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."
"I recognise that today is a day of mixed emotions," Ismailer concluded. "We're excited to have Rod [Fergusson] 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."
2K did not confirm how many developers have been impacted by the cuts.
Original story:BioShock 4 developer Cloud Chamber has reportedly appointed former Diablo boss Rod Fergusson as studio head and laid off an "unspecified number of staff."
Firaxis veteran Kelley Gilmore departed earlier this month after Take-Two Interactive reportedly overhauled parts of the upcoming BioShock and reshuffled its leadership team following a failed internal review by publisher 2K Games.
At the time, "people familiar with the situation" claimed the next entry in the BioShock series "recently failed a review by executives at 2K Games," with the game's narrative highlighted as needing improvement.
Now, Bloomberg's Jason Schreier reports layoffs at the BioShock 4 developer as Rod Fergusson takes over as Cloud Chamber's new studio head.
Fergusson announced his departure from Blizzard on August 8. While there's been no formal confirmation that he has joined the BioShock production, he was similarly parachuted in to lead the troubled BioShock Infinite project, staying at Irrational just eight months before moving on.
In a post on social media, Fergusson wrote: "Would you kindly allow me to share some news? 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 recognize 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. For now, the firehose of onboarding awaits, and I look forward to sharing more when I can."
The fourth mainline entry in the BioShock series was confirmed to be in development at 2K Games-owned studio, Cloud Chamber, back in 2019. This upcoming entry will be the series's first new entry since BioShock Infinite's release in 2013.
