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

The gaming industry has been heavily impacted by mass layoffs over the past two years, with these layoffs still having a significant effect. To better understand the situation, let's examine the layoffs that occurred in Europe between 2023 and 2024, focusing on the most affected groups, job search duration, and changes in income and working conditions. Our primary data source is the Big Games Industry Employment Survey 2024, conducted in Spring 2024. The survey gathered over 1,800 responses from game industry professionals, with the majority being mid-level or higher specialists. Nearly a fifth of respondents had over ten years of experience in the industry, indicating that even seasoned professionals were not immune to layoffs. Approximately 15% of respondents reported being laid off but had found new jobs by the time of the survey, while 6.2% were laid off and remained unemployed. Overall, 21.6% of respondents experienced layoffs. The survey shows that layoffs affected professionals across all seniority levels, with 23% to 26% of juniors, mid-levels, and seniors reporting being laid off. However, the recovery process varied by seniority, with senior professionals finding new jobs relatively quickly, while mid-levels and juniors faced more challenges. Among the specializations most affected by layoffs, artists, QA specialists, and HR/recruitment professionals were hit the hardest. Salaries for QA and HR/recruitment professionals also 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, and 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 how challenging the job search was for QA specialists, artists, and HR managers and recruiters. A total of 10% of respondents left the gaming industry during the wave of mass layoffs, with the highest percentage being among juniors at 31%. This crisis is driving young talent away, slowing the industry's growth and hindering its ability to benefit from fresh ideas. 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. To protect themselves from endless job searching, candidates can focus on building their personal brand, being present on professional social networks, and creating a network of potential hiring managers and industry experts. By doing so, they can increase their chances of finding a new job quickly and be better prepared for worst-case scenarios.