Layoffs have hit the gaming world hard in 2024
In recent years, the video game industry has been no stranger to layoffs, and unfortunately, 2023 saw a distressing surge in job cuts. With over 6,000 positions eliminated across various sectors including publishers, developers, and related companies, it marked a troubling trend. As the gaming community entered 2024, hopes for improvement were modest at best, but the year began with a series of layoffs that hinted at a potentially grimmer outlook.
The tumultuous first few weeks of 2024 witnessed both large and small-scale layoffs, underscoring the ongoing cycle of corporate downsizing within the industry. Frowned Upon has taken on it’s biggest task so far, trying to create a comprehensive list of any layoff news. Normally at this point I would write ‘enjoy’ but that doesn’t seem right for this article.
Thunderful – Approximately 100 people affected (20% of staff)
GamesIndustry reported on January 17 that Thunderful Group, a prominent player in the gaming industry, unveiled plans for a significant restructuring aimed at reducing costs. As part of this strategic overhaul, the company intends to lay off approximately 20% of its workforce.
CEO Martin Walfisz acknowledged the difficulty of these decisions, stating that they are essential to fortify the company’s sustainability. Despite the regrettable necessity of downsizing, Walfisz expressed confidence that these measures will ultimately position Thunderful as a stronger competitor in the market.
Pixelberry Studios – Approximately 120 employees impacted
On January 17, Gamedeveloper broke the news that Pixelberry Studios, a mobile game developer under Nexon’s umbrella, had initiated layoffs affecting an undisclosed number of employees. Public statements on LinkedIn from affected staff confirmed the layoffs, including remarks from associate engineering manager Paige Lowe.
Subsequent updates revealed that a California WARN notice indicated 120 employees would be affected by the layoffs, slated for March 15, 2024.
Netspeak Games – 25 staff members let go
Netspeak Games, the development studio behind the eagerly awaited title “Sunshine Days,” announced on January 16 that it had implemented layoffs affecting 25 employees. CEO Callum Cooper-Brighting, in a blog post, emphasised the challenging nature of these decisions, attributing them to the need to adapt the company’s structure to navigate the increasingly complex gaming industry landscape.
Wimo Games – Closure impacts 35 employees
Austin-based Wimo Games, specialising in virtual reality titles, ceased operations on January 17, resulting in the displacement of 35 employees. CEO Dave Rosen expressed gratitude for the team’s dedication and contributions while confirming the studio’s closure. Rosen assured affected employees of severance packages and encouraged interested parties to explore opportunities within the industry.
Behaviour Interactive – Approximately 45 individuals affected.
Between January 9-11, Dead By Daylight developer Behaviour Interactive undertook layoffs affecting around 45 employees at its Montreal studio. While these cuts spanned various departments, they represented less than 3% of the company’s total workforce. Behaviour Interactive cited changing market conditions as the impetus for these adjustments and expressed a preference for reallocating talent where feasible.
CI Games – Approximately 10% of workforce impacted
Gameindustry.biz reported on January 18 that CI Games, known for titles like Lords of the Fallen and Sniper Ghost Warrior, had laid off around 10% of its employees. This targeted round of redundancies, confirmed by CEO Marek Tymiński, aimed to streamline operations and optimise business processes amid evolving market dynamics.
31st Union – Less than 10 employees affected
According to sources familiar with the matter, 2K-owned studio 31st Union, led by industry veteran Michael Condrey, parted ways with fewer than 10 employees on January 18.
Com2uS – A number of employees affected
On January 18, Korea JoongAng Daily reported that Com2uS, a prominent South Korean mobile and online game company founded in 1998, had initiated layoffs affecting a portion of its workforce. Although the exact figure wasn’t disclosed, a company spokesperson explained that the decision was made to optimise certain projects in response to recent market and management conditions.
Com2uS is widely recognised for Summoner’s War, a highly successful online mobile game launched in 2014 that amassed over $1 billion in revenue by 2017.
Metaverse World (Netmarble F&C) – 70 employees impacted
According to a report from Korea’s Yonhap News on January 19, Netmarble, a leading South Korean mobile game developer, laid off approximately 70 employees from its subsidiary, Metaverse World. This entity, focused on the metaverse, was established by Netmarble in 2022.
Ntreev Soft (NCSoft) – 70 staff members let go
Korea JoongAng Daily reported on January 18 that NCSoft, a prominent South Korean video game developer and publisher known for titles like Guild Wars and Lineage, had terminated all 70 employees of its subsidiary, Ntreev Soft.
In addition to the layoffs, NCSoft announced the discontinuation of several mobile games, including Trickster M, Pro-Baseball H2, and Pro-Baseball H3. These measures are part of NCSoft’s ongoing efforts to streamline operations and reduce costs amid financial challenges and market changes.
Riot Games – 530 workforce reductions
Riot Games, the renowned developer and publisher of League of Legends and Valorant, revealed on January 22 that it would be reducing its workforce by approximately 11%, resulting in the termination of 530 positions globally. CEO Dylan Jadeja attributed this decision to the need for strategic realignment and sustainability.
The company announced the wind-down of its Riot Forge program, which collaborated with external development teams on spin-off games set in the League of Legends universe. Riot Games also disclosed plans to scale back resources allocated to its card game, Legends of Runeterra, citing financial challenges.
Riot Games assured affected employees of comprehensive severance packages and support during the transition period.
One Player Mission – Closure affecting 15 employees
On January 23, One Player Mission (OPM), a renowned video game recruitment agency, announced its closure after 26 years of operation, resulting in the displacement of 15 employees. Managing director Kim Parker-Adcock cited insurmountable challenges facing the games industry as the primary reason for the closure.
Despite the difficulty of this decision, OPM expressed gratitude to employees, clients, candidates, and partners for their support over the years.
People Can Fly – Over 30 layoffs
Poland-based People Can Fly, the studio behind titles like Outriders, announced on January 24 that it had laid off over 30 employees working on an unannounced project codenamed Project Gemini. The decision, attributed to budget constraints and project scope adjustments, aimed to ensure the studio’s financial sustainability.
While expressing appreciation for the contributions of affected staff, People Can Fly affirmed its commitment to supporting them during this transition period.
Black Forest Games – Approximately 50 workforce reductions
Black Forest Games, known for the Destroy All Humans! remakes, implemented layoffs affecting roughly 50% of its workforce, as reported on January 24. While specific details weren’t provided, the studio’s management assured staff that further information would be forthcoming.
Microsoft – 1,900 job cuts
IGN and The Verge reported on January 25 that Microsoft was laying off 1,900 employees across its gaming businesses, including Xbox, Activision Blizzard, and ZeniMax. This decision, representing approximately 8.6% of Microsoft’s gaming workforce, was communicated in an internal email from Xbox boss Phil Spencer.
The layoffs come in the wake of Microsoft’s $69 billion acquisition of Activision Blizzard and signal the company’s strategic adjustments within the gaming sector.
Archiact – Unknown
On January 4, 2024, Archiact, a developer known for its Doom 3 VR port, announced via social media that it had initiated a round of layoffs, although the exact number affected remains unspecified.
Bossa Studios – 19 people
While technically occurring in late 2023, Bossa Studios confirmed on January 5, 2024, that 19 employees had been let go. The layoffs primarily targeted roles in quality assurance (QA) and production, along with some non-UK staff.
Unity Software – 1,800 people
On January 8, 2024, Reuters reported a significant downsizing at Unity, with plans to reduce its workforce by nearly 25%. This marked the largest round of layoffs in the software company’s history, with completion expected by the end of March.
Twitch – 500 people
As reported by Bloomberg on January 9, 2024, Twitch, the Amazon-owned video game streaming platform, announced intentions to lay off 500 employees by month-end, representing approximately 35% of its workforce.
Playtika – 300-400 people
CTech revealed on January 11, 2024, that Playtika, a mobile game developer and publisher, intended to lay off up to 400 employees, constituting around 10% of its total workforce.
Discord – 170 people
On January 11, 2024, The Verge reported that Discord, a popular video game chat software developer, was planning to lay off approximately 17% of its workforce. CEO Jason Citron cited the need to streamline operations and enhance organisational agility.
Lost Boys Interactive – 125 people
Aftermath reported on January 12, 2024, that a substantial number of employees at Lost Boys Interactive, a Gearbox-owned developer, had been laid off, with a Washington State WARN Act notice indicating that around 125 individuals were affected.
Funselektor – 3 people
On January 12, 2024, the Canadian indie studio Funselektor announced the layoff of three developers, attributing the decision to the need to eliminate redundant positions.
PTW (formerly Pole To Win) – 45 people
PTW, a quality assurance and support studio, implemented layoffs affecting approximately 45 employees on January 11, 2024, primarily impacting QA staff located outside the United States.
Thunderful – 20% of staff (Around 100 people)
As reported by GamesIndustry on January 17, 2024, Thunderful Group announced plans to restructure its operations, resulting in the layoff of 20% of its workforce, with CEO Martin Walfisz emphasising the necessity of these measures for the company’s viability.
Threaks – 25 Staff Members Affected by Studio Closure
On February 2, representatives from Threaks, a German indie studio with a 15-year history, confirmed the unfortunate news of its closure, resulting in the layoff of its entire team. Earlier, there had been speculations about the studio’s imminent closure, as reported by Game Developer in January.
CTO Kevin Hagen took to LinkedIn to officially confirm the closure, expressing the team’s determination to salvage what they can during their remaining time while also assisting the staff in transitioning to new opportunities. The closure affected 25 individuals, according to Hagen’s statement.
Crop Circle Games – Approximately 50 Employees Impacted
Crop Circle Games faced layoffs, as reported by Game Developer on February 5. The layoffs spanned across various departments including writing, design, and engineering, according to public posts on LinkedIn.
Sources close to the situation indicated that nearly 50 individuals were impacted, although technically they were furloughed due to the company’s inability to provide severance pay. Crop Circle Games, founded in 2022 by Jeff Strain, former founder of Undead Labs (State of Decay).
Threshold Games — Closure Affects 11 Personnel
Threshold Games, an indie developer, announced via LinkedIn on February 6 that it would officially shut down on February 9, just a month before its planned press announcement. Lead producer Astra Ebonwing expressed the team’s sadness over the sudden turn of events, affecting 11 employees.
The studio, founded in 2019 by June Saphry, had high hopes before facing this unexpected closure, as reported by Game Developer.
91Act – Approximately 60 Employees Laid Off
Chinese mobile game developer 91Act reportedly laid off all its studio staff except for founder and CEO Jiang Lei, as per GameLook’s report on February 7. This move came shortly after the studio released a significant update for its 2023 title, BlazBlue Entropy Effect.
Visual Concepts Austin – Around 9 Employees Affected
LinkedIn posts on February 7 hinted at layoffs occurring at Visual Concepts Austin, renowned for its work on WWE 2K23, NBA 2K24, and Lego 2K Drive. Sources familiar with the matter informed Kotaku that approximately nine individuals were laid off on February 6.
Hidden Path Entertainment – 44 Employees Let Go
Hidden Path CEO Jeff Pobst announced on LinkedIn on February 7 that the studio had to lay off 44 employees after facing challenges in securing funding for an undisclosed RPG project. Pobst expressed regret over having to pause development on the project and reduce the company’s size temporarily.
The affected employees, who played significant roles in various projects, were praised for their contributions. Hidden Path expressed its commitment to supporting these professionals in finding new opportunities, while also hoping to collaborate with them again in the future.
Daybreak Games – Number of Layoffs Unknown
Daybreak Games, known for multiplayer titles like Everquest and H1Z1, underwent layoffs on February 9. Dimensional Ink, its studio supporting DC Universe Online, saw several senior staff members depart, according to a current employee.
Scopely – 15 Staff Members Affected by Publishing Partnership End
On February 14, Scopely confirmed to GamesIndustry.biz that 15 individuals were impacted by the termination of its publishing partnership with developer Global Worldwide, creators of the mobile strategy game Kingdom Maker. While most affected employees will transition internally to other projects, Scopely acknowledged that 15 may not find suitable roles within the company.
ZA/UM – 24 Employees Laid Off After Game Cancellation
Disco Elysium developer ZA/UM Studio laid off 24 employees following the cancellation of a game codenamed X7, as reported by GLHF on February 15. The layoffs affected various roles including writers, engineers, technical artists, production, IT, and animation workers.
ZA/UM confirmed the layoffs and expressed gratitude to the departing employees for their contributions, emphasising the studio’s need to adjust team size according to ongoing projects.
Build a Rocket Boy – Unspecified Number of Layoffs
Build a Rocket Boy, the studio behind the upcoming Everywhere and led by ex-Grand Theft Auto developers, announced layoffs targeting its publishing, QA, and art teams, as reported by PCGamesN on February 20. The studio cited the need for agility and focused development as reasons for the restructuring.
Disruptive Games – Layoff Count Not Disclosed
Disruptive Games, known for its support role in games like Diablo II: Resurrected and Tony Hawk Pro Skater 1+2, laid off an undisclosed number of employees on February 21. Former employee Marissa Framarini mentioned the layoffs in a LinkedIn post, praising the company for its ability to attract top talent in the industry.
Gameloft – Over 38 Employees Affected
Gameloft made significant cuts, laying off 38 employees from its Lviv office and an undisclosed number in Toronto on February 22. In a statement to PocketGamer, a Gameloft representative highlighted the need to adapt to changing market conditions and review production capacities.
Electronic Arts – Impact of Layoffs at Codemasters and Glu Mobile
EA announced layoffs at Codemasters and Glu Mobile after deciding to shut down mobile games EA Sports MLB Tap Sports and F1 Mobile Racing, as reported by GamesIndustry.biz on February 23. The publisher emphasized its commitment to the F1 franchise despite the difficult decision to end certain mobile titles.
Supermassive Games – Approximately 90 Employees Affected
Supermassive Games, the studio behind Until Dawn, revealed on February 26 that it would be undergoing layoffs, affecting around 90 workers according to a Bloomberg report. The studio cited UK labor laws and initiated a consultation period to prepare affected employees.
Die Gute Fabrik – 10 Employees Impacted by Funding Shortfall
Die Gute Fabrik, known for Saltsea Chronicles, announced on February 26 that it failed to secure funding for its next project, leading to the halting of production. The studio remains open to future funding opportunities while its team seeks new work.
Sony Interactive Entertainment – 900 Employees Laid Off
Sony Interactive Entertainment announced on February 27 that it would lay off approximately 900 employees across its worldwide studios. Several first-party studios, including Naughty Dog, Insomniac, Guerrilla Games, and Firesprite, were affected, along with the complete closure of London Studio.
Deck Nine Games – Reduction of Workforce by 20 Percent
Life Is Strange: True Colours developer Deck Nine Games announced on February 27 that it would reduce its workforce by 20 percent, impacting around 30 jobs. Game Director Stephan Frost mentioned leadership taking pay cuts to minimise layoffs.
Electronic Arts (Second Instance) – Around 670 Layoffs
Electronic Arts announced layoffs affecting around five percent of its workforce, approximately 670 individuals, as reported by GamesIndustry.biz. The move is part of a restructuring plan that includes a pivot away from licensed IP and reallocating developers to other projects.
These layoffs are a clear indicator of the challenges faced by the gaming industry, including evolving market dynamics and the need for companies to adapt to remain competitive. While layoffs are often driven by financial considerations and operational adjustments, they inevitably impact individuals and families within the gaming community.
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