As another month comes to a close, the games industry continues to experience a wave of redundancies. The past year has been one of the most challenging in the history of the industry.
In 2023, many companies faced a harsh reality as the rapid growth of the previous years proved unsustainable. The effects of the pandemic-fueled surge in 2021 and 2022 were short-lived, leading to a sobering return to normalcy in 2023. This trend of setbacks and realignments is expected to continue throughout 2024.
Here, in an article that will be continuously updated, we provide a summary of the pivots, layoffs, and restructurings that have occurred so far in 2024, starting with the announcements from this month.
February 2024
Popcore Faces Layoffs Impacting Key Staff
February 13th. Popcore, a German studio specializing in free-to-play mobile games, underwent a wave of layoffs, affecting key hires and leads. The studio, known for hit games like Parking Jam 3D and Pull the Pin, was acquired by Zynga subsidiary Rollic a year ago.
Scopely’s Kingdom Maker Team Sees Layoffs
February 13th. The Kingdom Maker studio at Scopely announced layoffs, attributing the decision to end its partnership with Global Worldwide on the title. The affected staff will be redeployed to other projects within Scopely, while Global Worldwide will continue to operate Kingdom Maker.
Blizzard Axes 68% of Employees in Ireland
February 19th. Following the Microsoft-Activision Blizzard deal, Blizzard announced significant layoffs at its Cork office, affecting 68% of its workforce. The company’s restructuring efforts have led to job cuts in areas of overlap, despite earlier promises to maintain current staffing levels.
Paramount Global Lays Off Entire Noggin Team
February 19th. Paramount Global made the decision to lay off the entire staff of Nickelodeon’s Noggin team, affecting 800 employees. The subscription-based service catering to young children will cease operations, impacting its 2.5 million global subscribers.
Build A Rocket Boy Reveals Layoffs
February 20th. Build A Rocket Boy, led by an ex-GTA producer, announced layoffs as it reevaluates its projects, including the development of Fortnite-like metaverse shooter Everywhere and action shooter Mindseye. The company’s expansion into new offices in Europe adds complexity to its restructuring efforts.
Gameloft Announces Global Layoffs
February 22nd. French developer Gameloft confirmed staff layoffs at its Toronto and Lviv offices, citing changing market conditions. Despite official statements, the exact number of employees affected remains unclear, highlighting the challenges faced by the company in adapting to industry shifts.
Sony Interactive Entertainment Cuts 900 Jobs
February 27th. Sony Interactive Entertainment initiated a major workforce reduction, affecting employees globally. In the UK, the closure of London Studio and reductions in Firesprite studio underscore the company’s strategic realignment to align with changing market dynamics.
EA Restructuring Leads to Layoffs
February 28th. EA announced layoffs as part of a restructuring plan to focus on strategic priorities and growth initiatives. The publisher will discontinue games and licenses that do not align with its future vision, signaling a shift in its approach to game development.
January 2024
Unity Streamlines Operations with Layoffs
January 4th. Unity’s CEO initiated a comprehensive assessment, resulting in the layoff of 1,800 staff members. This move aims to streamline the company’s operations and reduce costs to position itself for future growth.
Twitch Continues Job Cuts
January 10th. Twitch announced the layoff of 500 employees, representing 35% of its workforce, as part of ongoing restructuring efforts. The company’s financial challenges have persisted despite its popularity, leading to executive departures and operational adjustments.
Devsisters Downsizing in the US
January 11th. Devsisters confirmed downsizing in its US office, impacting key team members but not resulting in office closure. The strategic decision aims to address financial challenges while maintaining the company’s presence in the US market.
Google Adapts to AI Influence with Job Cuts
January 16th. Google quietly laid off over 1,000 employees as it integrates AI technology into its operations. The company’s ongoing shift towards automation and efficiency has led to workforce reductions in various departments.
Thunderful Group Implements Workforce Reduction
January 17th. Thunderful Group announced layoffs affecting approximately 20% of its workforce, part of a restructuring program to enhance its competitive position. The company’s strategic realignment includes divestments and cost-cutting measures to ensure long-term sustainability.
Riot Games Trims Workforce
January 23rd. Riot Games announced the layoff of 11% of its staff, totaling 530 jobs, in response to rising expenses. The company aims to refocus its business priorities and streamline operations for a more sustainable future.
We will continue to update this list as more news unfolds…
Photo by Hennie Stander on Unsplash
