Games Industry Layoffs Decline Slightly in 2025, Yet Remain Alarming

The games industry continued to face challenging conditions in 2025, with layoff figures remaining high, albeit lower than the peak in 2024. According to Amir Satvat, business development director at Tencent Games, the total number of layoffs in 2025 was approximately 9,175, slightly below his initial prediction of 9,769. This represents a significant decline from the estimated 15,631 layoffs in 2024, but still higher than the 8,500 layoffs reported in 2022, when the current industry crisis began. Satvat forecasts another 7,500 layoffs in 2026, indicating a gradual recovery in the industry, with the share of open roles in North America and Western Europe expected to decrease further. In contrast, job opportunities are anticipated to increase in Latin America, Eastern Europe, and Asia, reflecting the industry's ongoing geographical shift. The year 2025 saw numerous studio closures, including Toadman Interactive, Freejam, and nDreams Studio Orbital, among others. Several major gaming companies, such as Tencent Games, Microsoft, and Sony, implemented significant job cuts, while others, including Unity, Amazon, and Meta, also reduced their workforce. The trend of layoffs and studio closures is expected to continue in 2026, with emerging markets becoming increasingly important for the games industry.