In brief: Layoffs have hammered the tech industry over the past several years, and video game companies are no exception. A new report ahead of the 2026 Game Developers Conference indicates that over one-third of those working in the industry were either directly or indirectly affected by job cuts in 2025.
Out of over 2,300 US game developers, marketers, executives, investors, and other professionals surveyed in GDC's 2026 State of the Game Industry Report, one-third reported being laid off in 2025. The figure headlines a report that illustrates the deep impact of recent layoffs throughout the sector.
Globally, about 28 percent of industry workers were laid off, and half reported that their most recent employer had suffered layoffs in the past year. Over the past two years, 33 percent of US industry workers lost their jobs.
Unsurprisingly, large companies that develop AAA games were more likely to conduct layoffs. Two-thirds of respondents from large studios reported that their employers laid off workers, while the portion for indie studios was only one-third.
Microsoft likely played a large role in the layoffs, as the company cut 15,000 positions in 2025 across its gaming and non-gaming divisions. For comparison, Microsoft laid off "only" 12,500 workers between 2020 and 2025. Much of the downsizing followed the company's massive recent investments, such as its $69 billion acquisition of Activision Blizzard and its $80 billion investment in AI infrastructure.
More recently, Meta cut hundreds of jobs from its Metaverse division, which included the developers behind the company's virtual reality games. Meta is pivoting to AI and smart glasses after losing around $80 billion on Metaverse-related projects since Q4 2020.
The high number of layoffs likely explains the strong support for unionization among respondents, with 82 percent in favor, five percent opposed, and 13 percent unsure. Predictably, support rose to 87 percent among workers earning less than $200,000 annually, and to 88 percent for those surveyed under the age of 45. Among workers between the ages of 18 and 24, zero percent were opposed to unionization. Ubisoft workers announced plans for a large international strike this week, following news of restructuring and layoffs.
The Game Developers Conference, which sponsored the report, is scheduled to take place on March 9-13 at the Moscone Center in San Francisco. Last year, the industry event announced a rebrand for the 2026 conference, now called the GDC Festival of Gaming. Although GDC remains industry-only, a new "festival pass" will lower the financial barrier of entry for some attendees.