Assessing the Impact of Layoffs on the Gaming Industry Over the Past Two Years

The gaming industry has been marked by widespread layoffs over the past two years, with far-reaching consequences. Despite signs of stabilization, the sector continues to feel the effects of this crisis. To better understand the impact of these layoffs, particularly in Europe, it's essential to examine the key takeaways from the Big Games Industry Employment Survey 2024. Conducted in Spring 2024 and presented at the Devcom conference in August 2024, this survey provides invaluable insights into the experiences of game industry professionals. The anonymous survey gathered responses from over 1,800 professionals, with the majority being mid-level or higher specialists. Notably, 19% of respondents had more than ten years of experience in the gaming industry, indicating that even seasoned professionals were not immune to the effects of layoffs. The survey revealed that 15% of respondents who were laid off between 2023 and 2024 had found new jobs by the time of the survey, while 6.2% remained unemployed. Overall, 21.6% of respondents reported experiencing layoffs, affecting professionals across various seniority levels and specializations. The recovery process varied significantly by seniority, with senior professionals tend to find new jobs relatively quickly, whereas mid-level and junior professionals faced more challenges. Among the specializations most affected by layoffs, artists, QA specialists, and HR/recruitment professionals were hit the hardest. The survey also showed that salaries for QA and HR/recruitment professionals declined in 2024 compared to 2023, closely tied to layoffs and limited job opportunities. Looking at the full sample of respondents who changed jobs in 2023-2024, more than half managed to find a new position in less than three months. However, 12.3% took between six months and a year to find a new job, while 8.1% reported searching for over a year. Juniors emerged as the most vulnerable group, with nearly half taking more than six months to find a new job. Top-level experts and senior leaders demonstrated faster job searches, with 62% finding a new role in under three months. The survey highlights the challenges faced by QA specialists, artists, and HR managers and recruiters in their job searches. A significant trend noted by recruitment lead and partner at Values Value, Sasha Kononenko, was the influx of candidates actively job hunting, particularly UA managers, from late winter to mid-summer 2024. However, by fall, most had secured new roles, and those who remained with their current companies were reluctant to consider changes. Artists faced a tough time, with high competition and limited job openings. The survey found that 10% of respondents left the gaming industry during the wave of mass layoffs, with the highest percentage being among juniors at 31%. This exodus of young talent slows the industry's growth and hinders its ability to benefit from fresh, innovative ideas. Other groups that experienced departures during this period included mid-levels, seniors, team leads, and top-level experts. By specialization, QA specialists, HR managers and recruiters, analysts, product and project managers, marketers, and programmers transitioned out of gaming. According to the survey, 44% of specialists who changed jobs in 2023-2024 saw an increase in salary and/or career advancement, while 24% ended up in lower positions and/or with reduced salaries. Before the crisis, job changes often led to salary increases and career growth, but the new data reveals that mass layoffs have disrupted this trend. In 2023-2024, 25% of mid-levels and 26% of seniors reported accepting lower salaries and/or positions at their new jobs. Juniors faced unique challenges, with 36% accepting less favorable conditions after switching jobs. When it comes to professional fields, QA specialists and HR professionals were hit the hardest, with many game designers, artists, and programmers experiencing a decline in earnings and/or career progression after switching jobs. A laid-off employee from one of the largest game studios shared their experience, highlighting the challenges of finding a new job, dealing with emotional breakdowns, and handling additional issues such as work visas. The employee emphasized the importance of networking and personal branding in finding a new role. Sasha Kononenko shared her observations on how companies' hiring approaches have changed, with high standards and expectations for candidates to meet requirements 100%. Candidates, in turn, are concerned about the stability of potential employers, seeking guarantees such as flagship projects and investments. Kononenko suggests that candidates focus on personal branding, being present on professional social networks, and building a network of potential hiring managers and industry experts. By doing so, candidates can increase their chances of finding a new job quickly and protect themselves from endless job searching.