Lay-offs throughout the gaming industry have become a major part of the news cycle over the last couple of years, and it doesn’t look like the trend is going to slow down any time soon. Game Developer’s Conference has released its latest State of the Gaming Industry report, where, out of 2,300 industry professionals surveyed, 33 percent of those living in the US had been affected by lay-offs over the last two years.
Other countries haven’t fared much better in this regard, with 28 percent laid off in the last two years. 17 percent reported being affected by more recent lay-offs that took place in the last year. Generally speaking, the report notes that the number of lay-offs is likely higher, since it didn’t account for the same employees being affected multiple times.
48 percent of the respondents noted that they were still seeking employment following their respective lay-offs, while 36 percent said that their efforts to stay in the gaming industry haven’t borne much fruit yet.
The report also included 450 respondents who, in some form, experienced closures, mergers, or acquisitions last year. Curiously, around 31 percent who reported being laid off weren’t sure about the reason. Along with this, respondents from AAA companies and older indie teams were more likely to confirm acquisitions, while those from newer studios were likelier to just get shut down.
The reasons behind these job cuts have been attributed to various factors. 43 percent said that the restructuring of their respective companies led to lay-offs. On the other hand, 32 percent were let go after the cancellation of their projects. One of the respondents blamed company leadership for not understanding that the industry-wide boom experienced during COVID wouldn’t last.
“Leadership failed to see that the COVID-era boom was not permanent, [and the] company went on an acquisition spree before being acquired,” they said to GDC. “Now, money is a lot tighter because the goldfish with the money want returns yesterday so they can funnel it into the current fad (genAI).”
“Executives who have never actually worked as a [developer] are pulling up the boards on their ships, throwing people overboard, and expecting these scuttled ghost ships to keep making them infinite money,” said another.
Industry unions in Europe have been wary about more potential lay-offs, especially in light of Ubisoft’s recently-announced organizational overhaul and “voluntary mutual termination agreements”. Since cost-cutting measures are part of the company’s plans, French unions Solidaires Informatique, STVJV, and CFE CGC have asked the employees of Ubisoft Paris to “stop working” if CEO Yves Guillemot shows up during his planned February 3rd visit to the studio.
“It is time to make our boss understand that he is not welcome on our premises as long as he continues to mistreat his employees,” reads a pamphlet distributed by the unions. “We call on the employees of Ubisoft Paris to stop working if Yves Guillemot sets foot in our offices. Leave your desks, and gather in front of the building.”
