Video Game Developers Facing Layoffs in 2023

CI Games' Workforce Reduction

In a continuation of the challenges faced by the video game industry in 2023, CI Games, the publisher of Lords of the Fallen, has announced a significant reduction in its workforce. The company has laid off 10% of its employees, citing the need to preserve business strength and stability. CEO Marek Tyminski emphasized the tough but necessary decision, which has affected various departments, including the marketing team.

The layoffs have also impacted CI Games' development studios, Hexworks and Underdog. This move has sparked concerns about the future of ongoing and upcoming projects under the company's portfolio. The implications of these workforce reductions are significant, raising questions about the company's strategic direction and the well-being of its remaining employees.

Behaviour Interactive's Staffing Changes

Behaviour Interactive, known for its popular title Dead By Daylight, has also been affected by layoffs. The studio's Montreal team experienced a workforce reduction, resulting in the departure of 45 employees. The company cited changing market conditions as the reason for adjusting the scope of several projects, leading to the difficult decision to let go of a portion of its workforce.

While Behaviour Interactive expressed a preference for reassigning talent to other projects, the challenging market conditions limited this option. The layoffs at Behaviour Montreal represent less than 3% of the company's total workforce, but they have nonetheless raised concerns within the industry about the stability of major game development studios.

Industry-Wide Impact

The wave of layoffs in the video game industry extends beyond individual companies, with major players like Unity and Twitch also implementing significant workforce reductions. Unity, a leading game development platform, announced its largest layoff, affecting 25% of its employees. Similarly, Twitch, a prominent streaming platform, saw around 500 employees being let go.

The impact of these industry-wide layoffs is substantial, reflecting the evolving dynamics of the gaming landscape. As companies navigate changing market conditions and strategic shifts, the workforce reductions raise critical questions about the long-term sustainability and resilience of the industry. The recent announcement by Thunderful, involving a 20% reduction in its workforce, further underscores the challenges faced by game developers and the broader gaming ecosystem.