Analytics: gaming companies laid off more than 10,000 people in 2023
The year 2023 was marked by significant layoffs across the gaming industry. This wave of dismissals impacted both indie studios and large corporations: among those announcing layoffs were Embracer Group, CD PROJEKT, Ubisoft, Telltale Games, Blackbird Interactive, Ascendant Studios, and many other companies related to video games. According to data from the Game Industry Layoffs portal, 10,466 professionals lost their jobs since January.
The Wolf Among Us
In total, there were 162 rounds of layoffs in gaming companies throughout the year, with the highest number in November—20 rounds, and the least in March—six rounds.
It's important to note: the creator of the portal, Farhan Noor, mentioned that the statistics represent approximate figures. Part of the data is sourced from official announcements, while another part comes from media outlets and social networks. In his opinion, the actual number of laid-off developers could be much higher since not all companies publicize their layoffs.
Top 5 Companies with the Highest Number of Laid-Off Employees According to Game Industry Layoffs
1. Unity — 1,165 people
In 2023, there were three major layoff announcements from Unity. The most recent was in late November, after the company ended its partnership with Weta FX, a visual effects studio founded by director Peter Jackson. At that time, Unity announced the need to cut 265 jobs, or 3.8% of its total workforce. The company also warned that additional layoffs might occur by March 31, 2024.
The latest round of layoffs came shortly after controversy over Unity's new pricing policy based on installation fees, which the company later revised due to developer pressure. In its third-quarter 2023 report, Unity disclosed that the controversy had led to financial issues, although they hoped these would be short-term.
2. ByteDance — 1,000 people
A month ago, Reuters reported that Chinese giant ByteDance planned to restructure its gaming division and close publisher Nuverse. Nuverse's portfolio includes games like Marvel Snap, One Piece Blood Routes, and Ragnarok X: Next Generation.
In a comment to Reuters, ByteDance representatives confirmed the restructuring but did not elaborate on the details.
Earlier reports also revealed ByteDance's intention to sell the studio Moonton, which developed the mobile game Mobile Legends: Bang Bang and was part of Nuverse.
3. Embracer Group — 954 people
Swedish Embracer Group, which owns numerous game studios, began restructuring in June following a failed $2 billion deal. The company explained that this move was intended to reduce its net debt to 8 billion SEK ($757 million).
During the restructuring, Embracer Group executed layoffs at Crystal Dynamics, Gearbox Publishing, Beamdog, Rainbow Studios, Zen Studios, and many other subsidiaries. Additionally, they closed several studios, including Free Radical Design, Campfire Cabal, and Volition, and discontinued a number of games.
The restructuring plan for Embracer Group is set to be completed by March 31, 2024.
4. Epic Games — 830 people
Epic Games announced layoffs of 830 employees, or 16% of its workforce, in September. CEO Tim Sweeney explained that the company resorted to this because it was spending more than it was earning. Concurrently, Epic Games divested two assets: music store Bandcamp was handed over to the Songtradr platform, and advertising provider SuperAwesome became independent.
Sweeney assured that there would be no further layoffs at Epic Games.
5. Amazon Games — 751 people
Amazon conducted layoffs throughout the entire year. Since January, it has let go of about 27,000 employees company-wide, including those from its gaming division. Specifically, parts of the Amazon Games San Diego studio and departments of Prime Gaming and Twitch saw job cuts. Amazon also closed the Game Growth project, which was designed to assist developers with game marketing.
