- Around 2700 layoffs were announced in 2024 by companies like Twitch, Discord, and more.
- Riot Games is the latest to cut 530 jobs.
- Over 3200 professionals have now lost their jobs one month into the new year.
2023 was a terrific year for games and consumers, but it came with its own set of challenges. Amid Game of the Year winners like Baldur’s Gate 3 and AA hits like Hi-Fi Rush, industry professionals lost thousands of jobs.
With a fresh start, many hoped 2024 would put an end to such sad announcements. However, less than three weeks into the year, as many as 2700 layoffs were confirmed. Riot Games has added to the list, marking over 3000 job cuts in January.
Why it matters: Following the rapid expansion of studios and teams during the peak of the pandemic, more and more companies are beginning to cut back on their teams for sustainability.
According to estimates, around 9000 professionals in the industry lost their jobs in 2023. The biggest contributors to this number were companies like Epic Games, Embracer Group, and Unity.
Embracer Group was responsible for closing various studios like Volition Games, while Mediatonic, the team behind Fall Guys, was hit particularly hard under Epic Games.
In 2024, the likes of Twitch, Discord, and Unity Software are leading the charge. Riot Games made the latest announcement yesterday, bringing the total number of layoffs to about 3200 industry workers.
As reported by Gamesindustry, closures will be more prevalent than before in 2024. An anonymous CEO said:
“2024 will be the year of closures.”
These sources point to the increased entertainment investments during the pandemic as a major reason behind the current scenario, with one claiming that too many games were green-lit in 2020 & 2021.
Gamers were far more open to new projects then, with all the free time in the world. However, many of these projects are just beginning to come out, leading to failures and closures after people have shown selective interest.
A similar situation has been observed in other businesses of the world. However, with the insane spike in gaming activity during the pandemic, everything has come crumbling down suddenly these past few years.
If there is a bright side to this situation, it’s the fact that gaming investment is still growing. Many studios are still thriving, leading to hope for the industry to come out of this situation stronger than before. Till then, however, we can only hope for the best.
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[News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than three years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
