Ashes of Creation Fallout: Ex-Communications Director Alleges Mass Layoffs, Unpaid Wages

This caught my attention because Ashes of Creation has been one of the most talked-about indie MMOs of the last decade – and allegations that a studio closed suddenly, without final pay or WARN notices, matter deeply for developers and players alike.

Ashes of Creation shutdown: former comms director says “none of us are receiving” final pay

• Key takeaway: Margaret Krohn, Intrepid Studios’ former director of communications, alleges mass layoffs, unpaid final checks, no WARN Act pay, and unpaid PTO following a sudden studio shutdown.
• Founder turmoil: Steven Sharif reportedly resigned after losing control to the board and refused to sign off on actions he deemed unethical.
• Legal action likely: Former staff are compiling claims and exploring legal remedies; an Intrepid WARN filing lists a permanent closure with 123 employees.
• Player impact: Krohn urged players to pursue refunds – development appears halted and the studio culture she described has been fractured.

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Publisher|Intrepid Studios
Release Date|January 31, 2026
Category|MMORPG news
Platform|PC
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What happened, according to a former insider

Margaret Krohn – who worked at Intrepid Studios from 2019 and until last week served as director of communications — posted a blow-by-blow account after initially flagging “mass layoffs.” Krohn says she was told on January 28 that roughly 100 developers would be let go. By January 31 the studio had issued a WARN Act filing listing 123 employees and citing a permanent closure.

Krohn alleges employees have not received final paychecks, the 60 days notice and pay required by the WARN Act for qualifying mass layoffs, or payouts for accrued PTO. She also describes a chaotic internal timeline where news was shared privately, then broadly via confusing email, leaving teams scrambling and many without closure.

Context: WARN, closure filings, and leadership upheaval

The WARN Act requires 60 days advance notice for mass layoffs at many larger employers; state filings — including California’s employment department — can corroborate closures and employee counts. Krohn’s post aligns with a WARN-style filing dated January 31 listing a permanent closure and 123 employees.

Separately, founder and creative lead Steven Sharif posted that control of the company “shifted away from me” and that he resigned rather than be complicit in board-directed actions he couldn’t ethically support. That kind of leadership split often signals acute financial or governance crises rather than a planned shutdown.

Why this matters to players and the industry

For players, the immediate concern is refunds and the fate of Ashes of Creation itself — a long-promised MMO with a passionate community. Krohn explicitly told players they deserve refunds. For industry watchers, this incident highlights recurring risks for mid-size studios: governance friction, cash-flow fragility, and the human cost when layoffs happen abruptly.

For developers, the alleged failure to pay final wages and comply with WARN protections is a red flag that typically triggers legal responses. Krohn says former employees are assembling claims and pursuing legal options; given the WARN filing, there’s now an official record that will help frame those claims.

My read: what’s likely and what to watch next

This reads like a sudden board-versus-founder governance collapse layered on top of financial distress. If the board pushed decisions that precipitated a shutdown, and if payroll wasn’t funded, unpaid wages and WARN disputes will follow — especially in U.S. jurisdictions that enforce those protections. Expect unemployment claims, wage claims, and potentially a bankruptcy or restructuring filing.

I’m skeptical of any immediate reassurance from the company until concrete notices, payroll records, or legal filings surface. The active organization of former staff — and their public checklist — is a pragmatic next step and increases the likelihood of legal accountability or at least clarity about owed compensation.

What this means for you

If you bought into Ashes of Creation or supported Intrepid via early access or crowdfunding, follow official refund channels and document your transactions. If you’re an industry pro, pay attention to how mid-size studios manage governance and cash runway — the risk here is instructive.

TL;DR

Margaret Krohn, former communications director at Intrepid Studios, alleges a chaotic shutdown of Ashes of Creation staff with unpaid final wages, no WARN pay, and unresolved PTO payouts. Founder Steven Sharif reportedly resigned after losing control to the board. Former employees are pursuing legal options; players should seek refunds and watch for formal filings that will clarify next steps.