2025 Games Industry Layoffs: A Slight Dip, But Still Devastating
▼ Summary
– Games industry layoffs in 2025 were estimated at 9,175, a significant decrease from 2024 but still higher than pre-crisis 2022 levels.
– The majority of recent layoffs have been concentrated in North America and Western Europe, with AAA studios and California being particularly hard hit.
– Industry recovery is expected to be slow, with job opportunities predicted to decrease further in Western markets while increasing in Latin America, Eastern Europe, and Asia.
– Numerous major companies, including Microsoft, Tencent, Sony, and Ubisoft, conducted significant studio closures and layoffs throughout 2025.
– The year was marked by controversial labor disputes, such as accusations of union busting at Rockstar Games following employee dismissals.
The video game industry continues to navigate a period of significant transition, with layoffs in 2025 estimated at 9,175 positions. While this marks a notable decrease from the devastating 15,631 job losses recorded in 2024, the figure remains distressingly high and surpasses the 8,500 cuts seen in 2022 when the current downturn began. Business development director Amir Satvat, who compiles these figures using both public reports and community-sourced data, anticipates a further 7,500 layoffs in 2026, signaling a protracted and painful recovery phase.
A troubling geographic concentration has emerged from the data. Satvat notes that over 70% of layoffs have occurred in North America, with AAA studios and California-based companies being hit especially hard. The situation in Europe is similarly bleak, where a recent survey found more than a quarter of game professionals lost their jobs in the past year. Salaries have plummeted as a result; for instance, programmer pay has nearly halved in some regions due to a severe lack of open positions.
This upheaval coincides with a major shift in the industry’s global footprint. Experts observe that investment and growth opportunities are increasingly moving away from traditional hubs. Job opportunities are predicted to rise in Latin America, Eastern Europe, and Asia, while declining in Western Europe and North America. Venture capital is flowing toward emerging markets like China, Turkey, and Vietnam, indicating a long-term realignment of where game development and commercial success will originate.
The past year was marked by a long list of studio closures and restructuring. Notable shutdowns included Toadman Interactive, Microsoft’s The Initiative, Ubisoft Leamington, and the NetEase-backed T-Minus Zero Entertainment. Dozens of other studios underwent significant staff reductions.
Major corporations were not immune. Tencent Games implemented cuts and divestments across its European studios, affecting Sumo Group, The Chinese Room, Splash Damage, Funcom, and Sharkmob. NetEase pulled funding from several studios, leading to layoffs and closures, including at Jar of Sparks and Bad Brain Game Studios.
Microsoft executed the largest single round of cuts in July, affecting an estimated 9,000 employees and leading to the closure of studios like The Initiative, alongside cuts at Activision Blizzard, Bethesda, and Xbox teams. Sony also reduced staff at several PlayStation studios, including Visual Arts and Bend Studio.
Other industry giants made difficult decisions. Amazon Games laid off 14,000 workers, halting development on New World. Unity, Meta, and Intel all conducted multiple rounds of layoffs. Square Enix announced a fundamental restructuring shifting resources away from overseas studios, jeopardizing over 100 jobs.
Embracer Group’s ongoing restructuring impacted Crystal Dynamics and Eidos Montreal with repeated layoffs. Ubisoft cut jobs at multiple studios globally and proposed restructuring at RedLynx. EA reduced headcount at Respawn Entertainment, affecting Apex Legends and Star Wars teams, and paused development on the WRC series at Codemasters.
Take-Two Interactive also saw reductions at 2K’s Cloud Chamber and Firaxis Games. The most contentious action involved Rockstar Games, which dismissed 31 employees in the UK. The Independent Workers’ Union of Great Britain accused the company of union busting, a claim Rockstar denies, stating the firings were for gross misconduct. The incident prompted government scrutiny and internal protests, highlighting the human cost behind the statistics.
(Source: Games Industry)
