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Embracer Group CEO Hopes to Improve Trust

Embracer Group faced significant financial issues and widespread layoffs. A $2 billion deal collapsed, resulting in thousands of job cuts and studio closures. New CEO Phil Rogers aims to restore the company's damaged reputation. He hopes to rebuild trust with both gamers and the broader industry. Future company acquisitions will now be fully funded by organic cash flow.

https://finance.yahoo.com/markets/stocks/articles/2-billion-mess-saw-thousands-175713470.html


G5 Entertainment Cuts 180 Jobs Amid Cost Reduction

G5 Entertainment announced plans to lay off 180 employees. This reduction accounts for almost a quarter of the company's workforce. The company expects to save approximately $6.2 million annually through this cost reduction program. CEO Vlad Suglobov called the decision difficult but necessary. Further layoffs might occur if revenue declines and player acquisition costs rise.

https://wnhub.io/news/hr/item-50765


Survios Faces Major Layoffs, Operations Potentially Halted

VR game developer Survios has reportedly laid off much of its staff. Employee LinkedIn posts indicate the studio's operations may effectively halt. One designer stated Survios would be "essentially shuttered." The company recently expanded beyond VR to PC and consoles. Survios has not yet publicly commented on the situation.

https://www.uploadvr.com/survios-reportedly-sees-critical-layoffs/


Behaviour Interactive Denies Layoffs Linked to Union or AI Stance

Behaviour Interactive recently laid off approximately 40 employees. Rumors circulated online regarding the reasons for these layoffs. Allegations suggested the layoffs were due to unionization efforts or opposition to AI. Behaviour Interactive denied these claims, stating they were unrelated. The company explained the cuts stemmed from decreased demand for mobile and casual game development.

Montreal, QC

https://wnhub.io/news/hr/item-50700


Iron Galaxy Studios Reduces Workforce Amid Industry Changes

Iron Galaxy Studios announced new layoffs. The company is reducing its size due to industry changes. Up to 90 employees could be affected by this decision. This follows a previous layoff of 66 employees last year. The studio aims to adapt to current market conditions.

https://gamingbolt.com/iron-galaxy-studios-announces-layoffs-potentially-affecting-90-employees


Gaming Giants Cut Staff Amid Industry Challenges

The gaming industry is experiencing significant layoffs. Sony, EA, and Supermassive Games reduced their workforces. Star Citizen also implemented staff cuts. These events were reported around March 2026. The sector faces ongoing challenges.

https://fathomjournal.org/a2aedd58smm/d9024c49-BfBU6xGz_W4.html


Riot Games Cuts Jobs, 2XKO Affected

Layoffs have occurred at Riot Games, a prominent video game developer. The company is reportedly facing challenges in diversifying its game portfolio beyond its highly successful title, League of Legends. These job cuts are specifically impacting the team working on the upcoming fighting game, 2XKO. The layoffs suggest an internal struggle for the company to expand its creative reach and market presence. This development indicates potential strategic realignments or financial pressures affecting the gaming giant.

https://www.polygon.com/riot-games-2xko-layoffs/


It's all gaming fault, apparently

Microsoft’s Xbox hardware revenue has declined for three financial years in a row, and it looks like those declining revenues are going to continue throughout fiscal 2026. Xbox hardware revenue was down 32 percent year-over-year during the recent holiday quarter. Overall gaming revenue was also down 9 percent.

https://www.theverge.com/news/869493/microsoft-q2-2026-earnings-revenue-profits-windows-xbox-gaming-surface


Prince of Persia: The Sands of Time remake and more cancelled by Ubisoft, with layoffs potentially on the horizon

It also appears that more layoffs may be in Ubisoft's future too. We already knew that their Halifax studio is being shuttered, but according to VGC, the company is also considering the sale of other assets. On top of this, CFO Frederick Duguet said, "There are some people who will be refocused on other big projects, and some may leave the company." An exact figure wasn't specified in terms of staff members being moved or laid off.

https://www.rockpapershotgun.com/prince-of-persia-the-sands-of-time-remake-and-more-cancelled-by-ubisoft-with-layoffs-potentially-on-the-horizon


Unlikely, but ok

Elder Scrolls Online developer Zenimax Online Studios has disputed that its recent pivot to smaller "season" expansions or chapters is related to Microsoft's layoffs and a smaller team.

https://www.gamesindustry.biz/elder-scrolls-onlines-pivot-to-smaller-seasons-is-is-not-in-any-way-a-response-to-microsofts-layoffs


Ouch

Rockstar Games adopted strict internal measures by firing dozens of employees involved in sharing information about Grand Theft Auto VI. Essas actions occurred after discussions on external channels considered insecure, which included unauthorized people.

https://www.mixvale.com.br/2026/01/10/rockstar-indirectly-validates-leaked-gta-6-details-with-employee-layoffs-on-insecure-channels-en/amp/


Cloudhead Games is facing major layoffs, 70% of studio laid off

This has been confirmed in a statement on social media, where CEO Denny Unger revealed that "due to industry forces beyond control" the developer is being forced to lay off around 70% of its staff, with the cuts happening as of tomorrow, January 7. 30% of the developers will remain employed to "continue the mission."

https://www.gamereactor.eu/pi---l-whip-developer-cloudhead-games-is-facing-major-layoffs-70-of-studio-laid-off-1656613/


UK publisher Outright Games confirms layoffs

Outright Games is making 27 employees redundant. The Chicken Run: Eggstraction and Teenage Mutant Ninja Turtles: Mutants Unleashed publisher said the decision will enable it to adapt to shifting market conditions.

https://www.gamedeveloper.com/business/uk-publisher-outright-games-confirms-layoffs


Rockstar Faces Official Motion to Reverse Layoffs Amid ‘GTA 6′ Delay Concerns

  • 'Grand Theft Auto VI' was delayed again to November 2026, roughly around the time of Rockstar Games' layoffs controversy.
  • Layoffs at Rockstar Edinburgh cited confidentiality breaches; employees claim union organizing motivated firings.
  • City councillor and union push for fired employees’ reinstatement and financial support.

https://www.mensjournal.com/news/rockstar-faces-motion-reverse-layoffs-gta-6-delay-concerns


Lord of the Rings MMORPG reportedly cancelled

For fans dreaming of returning to Middle-earth in a new, next-gen adventure, the news isn’t good. Amazon’s ambitious Lord of the Rings MMORPG, which had been in development since early 2023, has reportedly been cancelled.

https://geektyrant.com/news/amazons-lord-of-the-ring-mmorpg-reportedly-cancelled-after-massive-layoffs


Another victim to layoffs

Amazon Games is winding down support for New World: Aeternum amid layoffs in the division and even deeper job cuts across its parent company. The game debuted on PC in 2021 and it landed on PS5 and Xbox Series X/S just over a year ago.

https://www.engadget.com/amazon-is-winding-down-its-still-popular-new-world-mmo-amid-mass-layoffs-150500426.html


Dune: Awakening Developer Hit With Layoffs

Funcom, the studio behind Dune: Awakening, has announced it will lay off some employees as part of a restructuring effort. The news may come as a surprise to many fans in light of the MMO's widespread popularity since release, although the team has dealt with its fair share of issues, too. Regardless, while work on Dune: Awakening will continue, not all the original staff will be involved in it going forward.

https://gamerant.com/dune-awakening-developer-funcom-layoffs/


Don't worry, no layoffs

Electronic Arts, headquartered in Redwood City, California, has sought to reassure employees following its massive $55 billion buyout. The company told staff through an FAQ filed with the SEC that there will be no immediate layoffs or job changes as a result of the deal, despite rumors circulating after Insider Gaming reported that employees at subsidiary BioWare feared cuts.

The FAQ emphasized that the acquisition allows EA to operate privately, outside the pressures of quarterly market expectations, and to take a longer-term approach to investment. EA said this new structure will give the company more creative and operational flexibility to pursue bold strategies and expand globally.

Still, the company acknowledged the reality of its financial obligations, including $20 billion in debt linked to funding the transaction. The buyout was backed by a consortium that includes PIF, Silver Lake, and Affinity Partners. While Electronic Arts has insisted that no layoffs are planned in the short term, comparisons have been drawn to Microsoft’s handling of Activision Blizzard, where workforce reductions eventually followed after a delay.

EA maintains that it is in a strong financial position and will use the buyout to “unlock new opportunities,” but uncertainty remains among employees about what the long-term impact might be.


Confused on RTO After Enrique's AEM - Here is the Clarification

According to the AEM guidelines, in-office presence is based on business needs rather than a strict requirement. The "three days per week" guideline is flexible and intended as general guidance. Your manager may request more or fewer days in the office depending on team needs.

Time spent in the office can be minimal, even as little as one hour, and arrival time is flexible unless you are expected to attend a scheduled meeting. Once that obligation is fulfilled, you are free to leave.

If you prefer or need to attend meetings virtually while in the office, for example due to health concerns or other personal reasons, that is also acceptable.

In practice, this means I will go into the office, find an available desk, join the meeting virtually from there, and then leave once it is concluded.


More layoffs at Ubisoft

We saw Ubisoft make more layoffs in the wake of a staggering $1.25 billion investment from Tencent and then flounder when pressed by Game File as to whether its upcoming expansion for As-----n's Creed Mirage was financed by the Saudi state.

https://www.gamedeveloper.com/business/ubisoft-continues-layoffs-after-billion-dollar-investment-is-saudi-arabia-financing-an-as-----n-s-creed-expansion-and-how-do-you-solve-a-problem-like-silksong-patch-notes-21


Gaming industry layoffs continue

Over the last three years, it is estimated that at least 30,000 people have lost their jobs in the gaming industry, with 4,400 of those cuts taking place in 2025 alone. Most recently, it was announced that Microsoft had made company-wide reductions affecting several of its gaming studios, including Rare, The Initiative, and King, with the cancellation of Perfect Dark's reboot eventually leading to layoffs at Crystal Dynamics.

https://hitmarker.net/news/over-50-of-layoffs-in-the-gaming-industry-have-taken-place-in-california-expert-says-1513194


Firaxis Layoffs

Layoff Record12

  • Civilization VII and Marvel's Midnight Suns Studio Firaxis Hit by Layoffs | TechRaptor>>

    https://opencritic.com/news/21101/civilization-vii-and-marvels-midnight-suns-studio-firaxis-hit-by-layoffs-techraptor
    Layoffs have struck at Marvel's Midnight Suns and Civilization VII studio Firaxis, with "dozens" of employees reportedly affected.
    Company: Firaxis Games
    Industry: Gaming


Crystal Dynamics Cuts...

Crystal Dynamics - Redwood City CA (studio) - Development/studio staff - The Tomb Raider developer conducted a second round of layoffs this year due to shifting business conditions; exact numbers were not disclosed, but the studio emphasized support for impacted staff.

https://www.windowscentral.com/gaming/tomb-raider-dev-crystal-dynamics-hit-by-layoffs-for-second-time-this-year-and-im-sick-of-writing-this-headline