The Dark Reality of Layoffs in the Gaming Industry: Unpacking the Last Two Years

Over the past two years, the gaming industry has faced a grim reality—mass layoffs have swept through many companies, and the aftershocks are still being felt. While some players and developers are beginning to see signs of recovery, the impact of these layoffs has created long-lasting effects on the workforce and workplace dynamics, particularly in Europe.

To understand the depth of this crisis, we turn to the Big Games Industry Employment Survey 2024, a comprehensive study conducted in Spring 2024. This survey gathered insights from over 1,800 game industry professionals and highlighted alarming trends during the tumultuous transition from 2023 into 2024.

Who Were Most Affected?

The survey revealed that the majority of those impacted by layoffs were not just entry-level employees but included seasoned professionals with significant experience, with 21.6% of respondents reporting job loss. Among junior, mid-level, and senior roles, the percentages of those laid off were troublingly consistent—between 23% and 26% across the board. Surprisingly, even those with ten or more years of experience were not exempt, with 15% of this group facing unemployment.

While senior professionals tended to land new jobs faster, challenges remained for junior and mid-level workers. About 10% of mid-level and 9% of junior employees were still searching for positions at the time of the survey, compared to only 3-5% of seniors and leads.

The hardest-hit specializations included artists, QA specialists, and HR professionals, with nearly a third of artists and testers reporting still being unemployed at the survey's time.

Job Search Struggles and Salary Changes

The data showed a stark picture of the job search landscape. More than half of those affected found new employment within three months, while 12.3% of respondents took six months to a year to secure a new position. Alarmingly, nearly half of junior respondents reported job-hunting for over six months, showcasing the vulnerability of entry-level employees in this climate.

When comparing job outcomes, 44% of those who changed jobs during this period achieved salary increases or career advancements. Conversely, a concerning 24% found themselves accepting lower positions or salaries, particularly mid-level employees. Furthermore, 36% of juniors faced reduced conditions when moving to new roles.

An Exodus of Talent

The layoffs prompted an alarming trend: 10% of respondents chose to leave the gaming industry entirely. Almost one-third of junior employees made this drastic decision, which raises concerns about the potential loss of future talent and innovation in the field. QA specialists and HR professionals were particularly hard-hit, with a significant portion abandoning the gaming sector altogether.

The Shift in Hiring Trends

As companies face an evolving job market, hiring practices have also transformed. Employers are setting exceptionally high standards, often expecting candidates to fulfill every requirement without room for growth or training. Candidates prioritize stability more than ever before, wanting assurances about a company's viability and profitability before accepting positions.

If you’re navigating this challenging job landscape, experts suggest building a robust personal brand and expanding your network. Actively engaging in industry discussions, sharing insights, and connecting with hiring managers can substantially increase your chances of finding a new opportunity.

Moving Forward

The gaming industry is at a crossroads, as it recovers from a tumultuous era defined by drastic layoffs. While some professionals have found new opportunities, many continue to navigate an uncertain job market. The long-term implications of this crisis could shape the industry's makeup for years to come, emphasizing the need for adaptive strategies among companies and workers alike.

As we try to forecast the future of hiring in the gaming sector, it’s clear that flexibility, personal branding, and a keen eye on stable opportunities will be crucial for both companies and job seekers. The lessons learned from this crisis may very well define the next chapter of the industry, as it strives to rebound from profound losses and embrace a more resilient future.