Recent data indicates that layoffs are expected to impact 14,259 individuals by the end of 2026, marking a 78% increase from the initial projections made earlier this year
The ASGC Games Industry Layoffs Tracker forecasts that job cuts within the sector will reach 14,259 by the conclusion of 2026. This new prediction marks a 78% increase compared to earlier projections for the same year.
Initially, in January, the forecast by ASGC anticipated 8,025 layoffs in 2026. However, as of July 26, this number had already escalated to 9,781.
Amir Satvat, business development director at Tencent Games and manager of the tracker, commented, "The pace of layoffs is accelerating faster than our models initially predicted."
A prior estimate on July 10 suggested there would be 13,878 layoffs, but the number has gone up by 381 layoffs in just over a fortnight. This includes 32 layoffs at ZA/UM, 20 at 11 Bit Studios, 51 at Ubisoft Barcelona, and 22 at Red Rover Interactive, among other companies.
Following the initial significant wave of layoffs by Xbox, affecting 1,600 staff across Obsidian, Bethesda, Id Software, and Zenimax Online Studios, there was an update on July 10 regarding these figures.
North America leads in the number of layoffs, comprising 66% overall and 79% of those impacted, with the United States accounting for 48% and Canada 17%. Meanwhile, 30% of the layoffs occur in Europe.
Together, North America and Europe account for 95% of the layoffs described.
The current year is predicted to surpass the estimated 15,631 layoffs in 2024, following a reduction to 9,197 in the previous year. Across a five-year span, layoffs are anticipated to nearly total 60,000.
According to Satvat, the timing for the remainder of Microsoft's 1,600 planned reductions is uncertain, with the possibility that some cuts might occur in the second half of FY27, during calendar 2027. He stated, "I currently assume all will occur in 2026 and will revise the estimate as better information becomes available."