Layoffs Surpass Expectations: Global Video Game Industry Ends 2025 with 9,000 Job Losses

Key Takeaways

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The global video game industry saw unexpected job cuts in 2025, with approximately 9,000 layoffs, surpassing earlier projections and being lower than the number of job losses in 2024.
Ubisoft announced further reductions at its Swedish studios, joining other companies that made cuts in 2025, with AI and automation being cited as primary drivers for these layoffs.
Amir Satvat, a prominent figure in the gaming industry, predicted that approximately 8,000 layoffs will occur in 2026, bringing the total job losses from 2022 to 2026 to around 51,709.
Automation and economic uncertainty are expected to continue contributing to layoffs within the global video game industry through at least 2026.

Global Video Game Industry Sees Unexpected 9,000 Job Cuts in 2025, Ubisoft Affected

According to Marcelo Vieira, writing on The Gaming Era site, the global video game industry saw approximately 9,000 layoffs in 2025. While this figure is lower than the 15,600 layoffs recorded in 2024, it exceeds earlier projections of 7,500. These job cuts extended across multiple companies. Ubisoft announced further reductions at its Swedish studios, joining other companies that made cuts in 2025. In previous years, several major companies announced layoffs, citing AI and automation as primary drivers. BT, for example, announced plans in 2023 to cut 55,000 jobs by 2030, and Accenture let go of 11,000 workers in three months as part of an AI reskilling program. In November, HP announced the elimination of 6,000 roles due to AI integration, and Salesforce reduced its customer support team by 4,000 because of AI’s impact. Specifically, Ubisoft is planning to cut 55 jobs at its Swedish studios, Massive Entertainment and Ubisoft Stockholm.

Job Cuts in Global Video Game Industry to Reach 51,709 by 2026 – Satvat’s Predictions

Amir Satvat, founder and leader of Always Supporting The Games Community (Asgc), is currently the Business Development Executive at Tencent in North America and previously worked at Amazon Games and AWS. He is known for his nonprofit initiative, Asgc, which assists laid-off developers in finding jobs through social networks. For his work with Asgc, Satvat received a trophy during The Game Awards 2024 and claims to have helped over 4,000 people get hired. Satvat shared insights and predictions regarding industry layoffs in a recent LinkedIn post. Satvat noted that 2025 was worse than expected for industry workers, although not as severe as the record-breaking 2024. According to Satvat’s analysis, 2026 will likely conclude with approximately 8,000 layoffs. By the time of his post in January, 115 dismissals had already occurred. “Should these numbers hold,” Satvat writes, “the total industry layoffs from 2022 to 2026, taking real data and projections into account, will reach 51,709.” He added, “I sincerely hope to be mistaken, with the final figure approaching zero as much as possible.” Satvat’s predictions include a platform to help industry professionals find work, viewable on the Asgc website.

Forecasted Layoffs in Global Video Game Industry Continue into 2026 Due to Automation and Economic Uncertainty

These trends indicate that automation and economic uncertainty will likely contribute to continued layoffs into 2026. (This text does not necessarily reflect the opinion of Portal Uai.)

In Case You Missed It

In our latest lineup of engaging reads, Jonathan Dubinski kicks things off with his insightful 2026 piece, “Elder Scrolls Online Leader Departs Due to Microsoft” Elder Scrolls Online Leader Departs Due to Microsoft. Published on January 2, this captivating article explores the reasons behind Matt Firor’s departure from ZeniMax Online Studios after nearly two decades. Dubinski reveals how Firor’s disagreement with Microsoft’s decisions during their summer restructuring led to his exit, offering a fascinating look into the gaming industry and the impact of corporate decisions on creative talent.

Mark your calendars for Bruno Pferd’s upcoming post, “These Are the 2026 Movies Everyone Wants to See,” scheduled for January 12. Bruno explores the cinematic landscape of 2026, filled with highly anticipated adaptations like Nintendo’s Super Mario Galaxy film and Denis Villeneuve’s conclusion of the Dune series. Don’t miss out on this must-read rundown of the most anticipated movies of tomorrow – check it out here These Are the 2026 Movies Everyone Wants to See.

Lastly, our ongoing exploration of the gaming industry’s shifting landscapes continues with Marcus Thompson’s revealing analysis, “Xbox Endures Historic Collapse in UK with Worst Annual Sales Ever” (published January 4, 2026). Thompson scrutinizes Xbox’s dismal performance in the UK market last year, unveiling a staggering 39% sales drop and marking an all-time low for the brand. While PlayStation 5 also witnessed a decline, Xbox was hit harder, prompting Thompson to explore the potential reasons behind this slump and its broader implications on Microsoft’s strategies. Check out his insightful analysis here Xbox Endures Historic Collapse in UK with Worst Annual Sales Ever.