The games industry has seen a tumultuous year in 2023, with many companies experiencing setbacks and having to make tough decisions. The year proved to be a reality check for many companies who had previously been riding high on the wave of success from 2021 and 2022. The pandemic-fueled growth that had propelled the industry to new heights turned out to be unsustainable, leading to a wave of layoffs and restructuring in 2024.
One of the biggest announcements in August 2024 was Intel’s decision to lay off approximately 15,000 staff as part of a $10 billion cost-saving plan. The company’s CEO, Pat Gelsinger, cited the need to make Intel’s cost structure more competitive in the face of changing market conditions. This move would impact 15% of Intel’s workforce and is expected to be completed by the end of the year.
In July 2024, Bungie, the Sony-owned video game development giant, announced the loss of 220 staff as the company sought to redress losses and prepare for future endeavors. Lively Studio also underwent layoffs in July as part of a restructuring effort to streamline certain areas of the business for long-term health.
Humble Games faced rumors of shutting down after reportedly laying off all staff in July, while Perfect World saw its CEO and co-CEO resign following mass layoffs at the company. NetherRealm, the studio behind Mortal Kombat, laid off its mobile games development team, impacting at least 50 staff members.
In June 2024, Gameloft Toronto laid off 49 staff, and Perfect World laid off as many as 1,000 employees in China. Sumo Group also announced layoffs of up to 15% of its staff across various studios.
May 2024 saw Playtika eliminating CRO and COO positions in new job cuts, while Square Enix braced for layoffs in the US and Europe as part of wider restructuring plans. Australian developer Mighty Kingdom laid off 28% of its staff, and Microsoft closed several Bethesda teams, including Alpha Dog Games, Arkane Austin, and Tango Gameworks.
In April 2024, Kwalee reportedly laid off approximately 10% of its staff, while GTA publisher Take-Two cut 5% of its workforce and canceled games in development. InnoGames announced a strategic realignment and job cuts, and Ubisoft continued its cost-cutting measures with 45 further redundancies across the globe.
March 2024 saw Sega lay off 240 employees and sell Relic Entertainment, while Tennis Clash developer Wildlife Studios laid off 133 staff. EA announced layoffs of 5% of its staff, and Blizzard confirmed layoffs of 68% of employees in Ireland.
As the year progressed, more companies announced layoffs and restructuring efforts. Unity laid off 1,800 staff, Twitch slashed 500 jobs, and Riot Games trimmed its workforce by 11%. YouTube Games chief Leo Olebe was among 100 job cuts in their gaming division, and Blizzard president Mike Ybarra was out as Microsoft laid off 1,900 employees.
The games industry has faced significant challenges in 2024, with many companies forced to make difficult decisions to adapt to changing market conditions. As the year unfolds, more news is expected to emerge about layoffs, restructuring, and the future of the industry. Stay tuned for updates on the evolving landscape of the games industry.