In brief: While the tech business as a whole has seen the mass layoffs from last year continue into 2024, the video game industry has had an even worse time over the last five and a half months. According to a tracker, more than 10,000 people have been laid off across the video game sector this year so far.
The Obsidian tracker, which specifically tracks video game industry layoffs, shows that 10,100 people have lost their jobs in 2024 so far. As noted by Eurogamer, the entirety of 2023 saw 10,500 game industry workers laid off, meaning there has been almost the same number of job losses this year in less than half the time.
One of the biggest rounds of layoffs we've seen this year came after Microsoft announced in January that it was releasing 1,900 employees at Activision Blizzard and Xbox, part of the company's plan to reduce overlap and establish a "sustainable cost structure."
Game engine maker Unity also cut around 1,900 jobs, or 25% of its workforce, at the start of 2024 as the company sought to improve its financial performance following a difficult year.
Publisher and Rockstar parent Take-Two Interactive said in April that it was cutting 5% of its workforce, equivalent to around 600 employees, as part of a cost reduction program. The move is set to incur costs of $200 million, including $140 million from canceled projects, though Take-Two said it would result in more than $165 million in annual savings.
EA also made significant cuts, laying off 5% of its workforce, or around 670 people, in February, while sunsetting several games.
Combining the number of layoffs this year with those in 2023 shows more than 20,000 people have lost their jobs in the video game industry over the last 18 months – that figure is likely higher as some companies never revealed how many people were being let go as part of the layoffs. Analysts expect the number of cuts to slow down going forward, but not stop completely.
For the avoidance of doubt - there are plenty of people in publishing I met who have their hearts in the right place. This message was for those who try to double their revenue year after year. You don't have to do that. Build more slowly and make your aim improving the state of… https://t.co/DTMmwst1qE
– Swen Vincke @where? (@LarAtLarian) March 21, 2024
Michael Douse, the director of publishing at Baldur's Gate 3 developer Larian, last month slammed companies that were making mass layoffs, noting that none of them were at risk of going bankrupt.
"They're just at risk of pissing off the shareholders. And that's fine. That's how they work. The function of a public company is to create growth for its shareholders [...] It's not to make a happy climate for the employees," Douse said.
Larian CEO Swen Vincke blamed the firings on the greed of companies trying to continually double their quarterly profits. Tarn Adams, creator of Dwarf Fortress, said the executives who make the decisions to lay off workers and cancel games could "eat shit," adding that they were horrible, bad people who are driven by greed.
