Game Industry in Turmoil: Massive Layoffs Sweep 2023, 9,000 Jobs Lost!

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Game Industry in Turmoil: Massive Layoffs Sweep 2023, 9,000 Jobs Lost!

The year 2023 continues to be challenging for game development. Following significant layoffs at companies like Epic Games and studio closures such as Daedalic in Hamburg, the industry-wide wave of layoffs persists into December.

The Embracer Group, grappling with a crisis since May 2023, is once again cutting jobs. New World Interactive, the developer behind multiplayer shooters Day of Infamy and Insurgency, is affected, as reported by The Verge.

“There have been restructurings,” said a spokesperson from New World’s owner, Saber Interactive, which is part of Embracer. These restructuring efforts have “unfortunately” led to layoffs, although Saber did not specify the exact number.

Embracer had recently considered selling Borderlands developer Gearbox, while Saints-Row developer Volition was shut down altogether.

EA trims at Codemasters

Even at racing game specialist Codemasters, positions have been cut. EA, the owner, confirmed this to IGN but didn’t disclose the exact number of affected employees.

“Our business is constantly evolving,” said an EA spokesperson. “At times, this requires the company to make smaller organizational changes to align our teams and resources with evolving business requirements and priorities.”

Codemasters released two games this year – the successor to the Dirt series, EA Sports WRC, and the Formula 1 racing game F1 23. EA acquired Codemasters in 2020 for around $1.2 billion.

Around 9,000 jobs lost

It’s not just major corporations; smaller indie publishers and studios are also feeling the impact. Tiny Build, the publisher of games like Hello Neighbor, confirmed layoffs after the current year’s financial numbers fell below expectations. Each of Tiny Build’s studios is reportedly facing job cuts ranging from 10 to 30 percent.

The total number of layoffs in the industry has now reached at least 9,000 in 2023 alone, not yet accounting for figures from EA, Embracer, and Tiny Build.

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Michael Lynch
With a passion for cybersecurity, Michael Lynch covers data protection and online privacy, providing expert guidance and updates on digital security matters.