According to a new State of the Games Industry survey conducted annually by the GDC, 1 in 4 developers have been laid off in the past two years.
The study surveyed 2,300 game industry professionals worldwide, and found that 17 percent of respondents reported being fired in the last 12 months, while 11 percent reported being fired in the previous 12 months.
I have been fired several times in the last 5-6 years, had very turbulent issues working in games. I'm traumatized and can't quite trust anywhere right now – California-based game designer.
As the GDC notes, that means a quarter of those surveyed have been laid off in the past two years (a third in the US), and the number of layoffs could be even higher because some respondents may have been let go. a lot times in the last two years.
Game designers made up the highest percentage of layoffs (20 percent), while business operators reported the least (8 percent).
According to the survey, 48 percent of those fired have not yet found another job and 36 percent of those who left their jobs in the previous year are still looking for work.
Game developers expect further cuts in 2026
Unfortunately, it has been reported that Ubisoft and Microsoft are looking at more layoffs this year, and that concern can be felt among respondents, as 23 percent anticipate more layoffs in 2026, while 30 percent are unsure what will happen.
Those working at triple-A studios were more likely to expect more layoffs.
“As for the layoffs of the past few years, there is a promise of a final 'course correction.' The post-pandemic layoff surge that follows the Covid-era investment and hiring will sort itself out,” the GDC report reads. “Some expected it to be this year. It wasn't. Not only have the streaks continued to plague the games industry; they've gotten worse.”
As game developers struggle to find work in an industry that continues to shrink year after year, not surprisingly, those trying to break into game development are worried about their future prospects. 74 percent of students surveyed are concerned about finding a place in the games industry, given the lack of entry-level jobs and increased competition, as well as AI-led displacement.
Eighty-seven percent of teachers surveyed similarly expect a negative impact on student placement, with some arguing that it is already happening.
GDC asked respondents to share three reasons given by their current or former employees as to why all these layoffs are happening, and 43 percent claimed it was because of company restructuring, 38 percent because of budget cuts and market conditions, and 32 percent because of project cancellations. However, much of the blame was placed on “mismanagement and greed, unrealistic expectations, US-based tariffs,” as well as “adoption of AI tools.”
Former Ubisoft employee claims “DEI only improved things” as conspiracies spread about why the company is struggling.
They argue that if Ubisoft blames DEI, “it will be over for them.”
