2023 Global Gaming Industry Layoffs: The Impact on Tech and Innovation




TechWizard: Yearender 2023 – Global Layoffs Impacting the Gaming Industry

Massive Layoffs Rock the Gaming Industry in 2023

It was a year of massive changes, and several layoffs took place in 2023- which shook almost every existing industry. It was recently reported that layoffs have affected at least 9,000 globally. Here are a few companies which took the massive step of letting go of people, to sustain and survive in the competitive environment.

Epic Games layoffs in September

Fortnite developer Epic Games has initiated a significant round of layoffs in September, which has affected around 870 employees, constituting around 16% of its workforce. CEO Tim Sweeney stated that the decision had been made to attribute the financial challenges, further stating that the company had been spending more money than it inflow.

Ubisoft’s layoff due to restructuring in November

Ubisoft- A French video gaming company which is very popular for its franchise games like the Assassin’s Creed and Far Cry franchises, has reportedly laid off around 124 employees. The move was made as a part of a broader corporate restructuring and reorganisation strategy.

Embracer Group’s layoff for restructuring due to challenges

Embracer Group, one of the known companies, majorly recognized for acquiring the gaming studios and IP rights to The Lord of the Rings, has reportedly faced significant restructuring in 2023. The move was taken after a failed investment strategy, and the company shut down its three studios, cancelled several projects, and further laid off over 900 workforce.

Hasbro’s Impact on Baldur’s Gate 3 Team

Hasbro – another gaming company further made news for laying off around 1,000 employees this year. It further included a substantial portion of the team which collaborated on Baldur’s Gate 3 with Larian Studios.

Electronic Arts’ workforce decreased

Electronic Arts (popularly known as ‘EA’) has implemented a workforce reduction, which has been letting go of 6% of its employees, which is a total of around 780 people.

Major Impact across the Industry

Not only these but there were many more companies, that let go of the employees – even those who were associated with the organisation for a very long time. Some of the prominent gaming companies including Microsoft, Bungie, Amazon, CD Projekt Red, Naughty Dog, BioWare, Sega, Unity, and Activision Blizzard, faced challenges in 2023, with varying degrees of layoffs and restructuring. The video game industry witnessed a series of layoffs, affecting at least 9,000 employees globally, marking a challenging year for many key players in the sector.

Inputs from IANS

ALSO READ: PM Modi’s YouTube channel surpasses 20 million subscribers, establishing a global leadership presence