2022–2026 video game industry layoffs: History and Key Facts

The video game industry experienced mass layoffs in a wave which began in 2022 and peaked in January 2024. An estimated 45,000 jobs were lost from 2022 to July 2025. According to the 2026 State of the Game Industry Report published by the Game Developers Conference (GDC), 33% of surveyed American video game industry workers reported being laid off during the previous two years, compared to 28% of respondents globally. The survey, which included more than 2,300 industry professionals, also found that half of respondents said their current or most recent employer had conducted layoffs within the previous 12 months. Layoffs were reported more frequently at AAA game studios, where two-thirds of respondents indicated their companies had reduced staff, compared to one-third of respondents working at independent studios. The report also found that 82% of U.S.-based respondents supported the unionization of video game industry workers.

From 2023, North America and Europe were severely affected, particularly California which accounted for 50% of all layoffs. By 2025, approximately 26% of European game developers had been laid off at least once over the period, and salaries fell in a number of roles due to high competition. Unity programmers in particular saw their salaries fall by an estimated 50%. Over 30 video game development studios laid off their entire staff and shut down. Some of the most notable company closures include: Monolith Productions, Bluepoint Games, Arkane Austin, Sanzaru Games, The Initiative, Ready at Dawn, Luminous Productions, Volition, London Studio, Pixelopus, Riot Forge, Armature Studio, Twisted Pixel Games, and others.

These layoffs had reverberating effects on both established and emerging games companies, impacting employees, projects, and the overall landscape of the games industry. Major job cuts took place at Embracer Group, Unity Technologies, Microsoft Gaming, Electronic Arts, Sony Interactive Entertainment, Epic Games, Take-Two Interactive, Ubisoft, Sega, and Riot Games. The layoffs caused several video games to be canceled, video game studios to be shut down or divested from their parent company, and thousands of employees to lose their jobs.

The COVID-19 pandemic led to an increase in interest in gaming globally, and was a period of dramatic expansion in the industry, with many mergers and acquisitions conducted. In many cases companies over-expanded, as this rapid COVID-era growth was unsustainable. The industry began to slow in 2022, and amid spiralling costs and a shift in consumer habits, layoffs began. These were primarily limited to China and Russia to begin with, with the Chinese industry adversely affected by a licensing freeze and the Russian industry by the Russian invasion of Ukraine respectively.

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