Gaming Layoffs Expected To Hit 14,000 As Another Studio Announces Cuts – Channelnews

Gaming Layoffs Expected To Hit 14,000 As Another Studio Announces Cuts – channelnews

The global video game industry is now expected to shed more than 14,000 jobs during 2026 as the pace of layoffs accelerates across major publishers and independent studios. New figures from the ASGC Games Industry Layoffs Tracker forecast that 14,259 workers will lose their jobs by the end of the year, up 78% from its initial January estimate of 8,025. At least 9,781 gaming workers had already been affected by July 26, exceeding the total number of layoffs recorded throughout 2025. The latest forecast is 381 jobs higher than an estimate published on July 10, following further cuts at studios including Ubisoft Barcelona, ZA/UM, 11 Bit Studios and Red Rover Interactive. “The pace of layoffs is accelerating faster than our models initially predicted,” said Amir Satvat (pictured), Tencent Games business development director and maintainer of the tracker. Psychonauts developer Double Fine has also confirmed that it is cutting 23 positions after separating from Microsoft and returning to independent ownership. Double Fine founder Tim Schafer said the cuts were required to ensure the studio remained financially sustainable. “Only the survival of our studio would ever make us consider such a painful action,” Schafer said. “Our transition to becoming an independent company also means becoming a size that we can sustain.” Microsoft confirmed that Double Fine had returned to independent management with ownership of its intellectual property, game catalogue and funding for future projects. The latest losses follow a major restructuring of Microsoft’s Xbox division, which has affected studios including Bethesda, Obsidian Entertainment, Id Software and ZeniMax Online Studios. Around 1,600 Xbox employees were reportedly cut during the first wave, with another 1,600 positions expected to be removed over the following year. North America accounts for 66% of announced gaming layoffs and 79% of affected workers, while Europe represents another 30% of reductions. Together, the two regions account for approximately 95% of global industry layoffs. If the latest forecast proves accurate, almost 60,000 gaming workers will have lost their jobs between 2022 and the end of 2026.

New data suggests layoffs will affect 14,259 people by the end of 2026, up 78% from first forecast of the year

New data from the ASGC Games Industry Layoffs Tracker predicts job losses will reach 14,259 by the end of 2026, representing a 78% increase over an initial forecast for the year.