Over 6,100 Gaming Industry Jobs Cut in the First Month of 2024

The gaming sector is facing a tough start to 2024, with major companies like Microsoft and Riot Games announcing significant job cuts. This downturn follows a period of rapid expansion during the COVID-19 pandemic, which is now adjusting to a more subdued growth rate.

In a striking development, Microsoft is set to reduce its gaming division by 1,900 positions, a move disclosed shortly after its massive acquisition of Activision Blizzard. This decision reflects the broader industry trend of scaling back following a surge in demand during the pandemic.

Riot Games, the creator of the popular game League of Legends, is also trimming its workforce by 530 employees, which represents about 11% of its total staff. The company has expressed a desire to streamline operations and concentrate more on its core gaming projects.

Other notable layoffs include Twitch, Amazon's game streaming service, which has let go of 35% of its workforce, and Unity, a key game development software provider, announcing a 25% staff reduction. These cuts are part of a larger pattern of layoffs within the gaming industry, which has seen thousands of job losses over the past few years.

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The gaming industry's slowdown is evident in its growth figures, with a mere 0.6% increase in 2023, a stark contrast to the 8% growth experienced in 2020. As companies adjust to this new reality, the impact on gaming professionals continues to mount, with over 3,770 affected this year alone.

Source: Video Games Layoffs