2022–2025 video game industry layoffs

The video game industry experienced mass layoffs in the early to mid 2020s, peaking in January 2024. Over 10,500 jobs were lost in 2023, and an additional 14,600 jobs were lost in 2024. 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. From 2023, most of the job cuts occurred in North America and Europe, with the video game industry in the United States being the most affected, followed by Canada, the United Kingdom and Poland. Over 30 video game development studios laid off their entire staff and shut down. Some of the most notable company closures include: Monolith Productions, Arkane Austin, Ready at Dawn, Volition, London Studio, Pixelopus, Riot Forge and others.

A new survey by the International Game Developers Association (IGDA), based on 2023 data, suggests a global unemployment rate of 4.8% within the game industry. Some industry experts believe that the rate in the United States could have doubled by May 2024. Executive Director of Circana (The NPD Group), Mat Piscatella suggests that the most optimistic projection indicates a potential decrease of about 2% for American video game industry in 2024. However, a more pessimistic perspective could see a decline of around 10%, with the possibility of an even greater downturn if conditions worsen significantly. According to a report by DDM Games, the industry is currently in a "reset phase." Companies are restructuring their operations through closures, layoffs, and divestitures. The pandemic-induced growth surge has subsided, leading to a need for recalibration. AI is a concern for many developers also, though there is no indication that layoffs have been driven directly by its adoption. It may however have impacted illustrators and other professions particularly exposed to automation.