2023–2024 video game industry layoffs

Beginning in 2023 and continuing into 2024, the video game industry has experienced mass layoffs. Over 10,000 jobs were lost in 2023, and an additional over 8,000 jobs were lost in 2024 from January to March. These layoffs had reverberating effects on both established game development studios and emerging companies, impacting employees, projects, and the overall landscape of the gaming industry. 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.

Most of the job cuts occurred in North America and Europe, with video game industry in the United States being the most affected, followed by Canada, United Kingdom and Poland. Over 30 video game development studios laid off their entire staff and shut down.

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.

The layoffs were not a singular event but rather the culmination of several converging factors. The COVID-19 pandemic unexpectedly fueled a surge in video game demand. This led companies to make ambitious investments in acquisitions, mergers, and staff expansion, anticipating sustained growth. However, as the world reopened and the market returned to pre-pandemic trends, the rapid growth proved unsustainable, and companies found themselves with bloated operational costs, necessitating cutbacks.