The gaming industry is facing a reckoning. And if you work in it, you’ve already felt the impact.
For the past two years, layoffs in gaming have felt relentless. In just the first two months of 2025, companies like Ubisoft, Crytek, and BioWare have already cut hundreds of jobs. By now, over 34,000 people have lost their roles in the gaming sector since 2022.
But here’s the twist: for the first time in two and a half years, hiring may be catching up to layoffs.
After months of bad news, this raises a critical question:
Are we finally seeing the bottom of the gaming layoffs—or is this just a pause before another wave?
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THE INDUSTRY’S BIG PROBLEMS: WHY LAYOFFS KEEP HAPPENING
Layoffs in gaming aren’t just about cutting costs. If that were the case, companies would have stopped months ago.
Instead, three deeper trends are shaping these cuts — and they aren’t going away anytime soon.
1. Overexpansion & the Post-Pandemic Reality
Between 2020 and 2022, gaming was booming. Studios hired aggressively, betting that pandemic-driven gaming habits would last. Investors poured money into game studios, expecting permanent growth.
They were wrong.
As player spending normalized, many companies found themselves overstaffed. This became clear in 2023 and 2024, when major players — Microsoft, Electronic Arts, Riot Games, and Take-Two — began downsizing.
Ubisoft, for example, cut 1,000 jobs in 2023, and now in 2025, it has shut down its Leamington studio, eliminating another 185 roles.
2. AI & Automation Are Reshaping Jobs
Artificial intelligence isn’t just a buzzword. It’s actively changing who gets hired — and who doesn’t.
Game studios are increasingly automating parts of development, from art generation to NPC scripting. This is reducing demand for certain creative roles, while shifting hiring toward AI specialists.
Crytek, for instance, paused development of Crysis 4 and cut 15% of its workforce in 2025. One key factor? A restructuring to focus on AI-powered development tools.
3. Too Many Games, Too Little Demand
The industry is oversaturated.
2023 and 2024 saw more game releases than ever before, yet players are still spending their money on a handful of dominant franchises (Call of Duty, Fortnite, Grand Theft Auto).
BioWare’s struggles prove this. Despite years of development, Dragon Age: The Veilguard failed to meet internal expectations. As a result, BioWare downsized again in 2025, cutting its team to fewer than 100 employees.
The pattern is clear: even successful studios aren’t safe.
KEY COMPANIES AND THEIR LAYOFF STRATEGIES
The layoffs of 2025 aren’t random. Each company that has cut jobs this year has done so for specific reasons tied to its strategy, financial health, or shifting priorities.
Here’s how some of the biggest gaming companies are handling layoffs — and what it tells us about the future of the industry.
1. Ubisoft — Downsizing Amid Restructuring
- 185 layoffs in January 2025
- Leamington studio shut down entirely
- Focus: Cost-cutting and project consolidation
Ubisoft’s strategy is clear: fewer projects, tighter teams, and lower risk.
The company has been in restructuring mode since 2023, when it cut 1,000 jobs and canceled multiple unannounced games. In 2025, it doubled down, shutting down its Leamington studio and letting go of 185 employees.
Ubisoft is betting on big franchises (Assassin’s Creed, Star Wars Outlaws) while quietly pulling back on experimental projects.
2. NetEase — Layoffs Despite Success
- Seattle-based design team eliminated in February 2025
- Focus: Studio consolidation and streamlining
NetEase launched Marvel Rivals to critical and commercial success. So why did it fire an entire design team just weeks later?
The company’s official line is “organizational efficiency.” But insiders suggest this is part of a larger trend of centralizing talent in China and reducing reliance on overseas teams.
This reflects a broader pattern in the industry: even hit games don’t guarantee job security anymore.
3. Crytek — Freezing Development, Cutting Jobs
- 60 layoffs in February 2025 (~15% of workforce)
- Development of Crysis 4 paused
- Focus: Financial struggles and AI-driven restructuring
Crytek’s layoffs in 2025 weren’t just a cost-cutting move. They were a sign that something bigger was wrong.
The company put Crysis 4 “on hold,” with reports suggesting it was due to funding shortfalls and a shift toward AI-driven development. Crytek has long been a leader in high-end graphics, but with increasing production costs, it’s looking for ways to stay competitive.
The message? If a Crysis sequel can’t get greenlit, even legacy franchises aren’t safe.
4. BioWare — Surviving on Smaller Teams
- Fewer than 100 employees left after new 2025 layoffs
- Focus: Shifting resources to Mass Effect
BioWare’s latest layoffs were less about cost-cutting and more about focus.
With Dragon Age: The Veilguard underperforming internally, EA made the call to shrink BioWare again — but rather than shutting it down, the company is now prioritizing the next Mass Effect.
This fits with a growing industry trend:
Fewer studios making more predictable, franchise-driven games.
5. Iron Galaxy — A “Last Resort” Cut
- 66 layoffs in February 2025
- Focus: Financial stability
Iron Galaxy’s layoffs weren’t tied to a canceled game or restructuring. Instead, the company called it a “last resort” to stay financially sustainable.
This highlights another key reality:
Even independent studios with strong reputations are struggling to survive.
These cuts aren’t just about bad business decisions — this is about survival.
WHAT COMES NEXT? SIGNS OF RECOVERY & RISK
Layoffs aren’t the full story. While thousands of jobs have been cut, there are also signs that the worst may be over.
Some industry analysts believe hiring is finally catching up to layoffs. Others argue that this is just a temporary lull before another wave of cuts.
Here’s what’s changing — and what still poses a risk.
1. Hiring is Stabilizing for the First Time in 2.5 Years
- Data from Amir Satvat, a leading voice tracking gaming layoffs, suggests that hiring rates may now be equal to layoff rates for the first time since 2022. (Amir’s website)
- This doesn’t mean a hiring boom — but it does mean that studios aren’t cutting jobs as aggressively as before.
2. 2025’s “Hail Mary” — Big Games & New Consoles
- The second half of 2025 will see the biggest game launch of the decade: Grand Theft Auto VI.
- A new Nintendo console is also expected later this year, which could drive higher investments in game development.
- Historically, hardware launches drive hiring, as studios ramp up for the next generation of content.
3. AI is Reshaping Who Gets Hired
- While some jobs are disappearing, others are being created.
- Studios are actively hiring AI engineers and specialists in procedural content generation (automating game assets, world-building, and NPC behaviors).
- This shift isn’t eliminating jobs entirely — but it’s changing the skills that studios prioritize.
4. The Live-Service Bet: Studios Are Chasing Recurring Revenue
- Games that rely on a single upfront sale are struggling to make back their development costs.
- This is why publishers are doubling down on live-service games, expansions, and microtransactions.
- However, this is a gamble. Not every live-service game succeeds (Anthem, Marvel’s Avengers), and studios that fail may be the next ones cutting staff.
The companies that survive 2025 will be the ones reinventing how games are discovered, played, and monetized.
AMIR SATVAT — THE INDUSTRY’S UNOFFICIAL JOBS LEADER
Layoffs in gaming have dominated headlines for the past two years. But behind the scenes, one person has been quietly helping thousands of affected developers land on their feet.
That person is Amir Satvat.
Amir isn’t a recruiter. He isn’t a journalist. He’s a business development director at Tencent. But in his spare time, he built the Games Jobs Workbook, a resource that has helped over 1,800 people get new jobs in the gaming industry.
His impact?
- Over 3,000 job-seekers helped through his hiring support initiatives.
- More than 2,000 hours spent tracking layoffs, sharing resources, and connecting candidates with studios.
- Recognized with the first-ever “Game Changer” award at The Game Awards 2024.
Yet, even as he’s helped so many, he’s faced backlash. After receiving his award, he was hit with harassment, including antisemitic attacks. Instead of stopping, he doubled down on his efforts.
Why does this matter?
Because while gaming companies have been cutting jobs, Amir has been finding ways to create new opportunities.
The industry may not be getting it right, but people like Amir Satvat are proving that individual efforts still matter.
SOME TAKEAWAYS: THE BIGGER PICTURE
The gaming industry is at a crossroads.
On one side, 34,000 jobs lost in just over two years is a clear sign of instability. Studios have shrunk, projects have been canceled, and even blockbuster games haven’t guaranteed job security.
On the other hand, hiring is finally starting to match layoffs. If this trend holds, 2025 could mark the beginning of a recovery—but it won’t look like the industry of the past.
Key Insights from the 2025 Layoffs
The era of mass hiring is over: Studios are leaner, more risk-averse, and increasingly reliant on proven franchises.
AI is reshaping the workforce: Jobs aren’t just disappearing—they’re shifting toward automation, AI development, and procedural content generation.
Major releases (GTA VI, new Nintendo hardware) may stabilize the market: But if they underperform, expect another wave of cuts.
Live-service models are a risky bet — but many studios are all-in: This could create more sustainable revenue — or lead to more high-profile failures.
If this industry is resetting, the question is: who will still be standing in 2026?
The gaming industry is changing fast. Are you keeping up?
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