Game Industry Layoffs – The gaming industry is a sector that is growing very rapidly and has huge profits. However, this industry is also not free from mass layoffs that often occur.
Now, the total layoffs in the gaming industry in the period of 2024 from January to July have exceeded the total layoffs that occurred in the period of 2023. And perhaps the layoffs will continue until the end of the year.
Total Game Industry Layoffs Now Surpass 2023 Record
Reported from videogamelayoffs.com, Total Game Industry Layoffs in 2024 from January to July are estimated to have exceeded 10,561 people and may continue to grow. This figure has exceeded the total layoffs in 2023.
It is known that in 2023, 10,500 people have been affected by layoffs in the sector. These layoffs also occurred for several reasons ranging from failure to achieve sales targets, wrong business strategies, and studio closures due to several factors.
In fact, this problem is often a topic of sarcasm towards gaming industry giants, such as Geoff Keighley, who has been feeling sad about the gaming sector lately.
Japan Not Experiencing Mass Layoffs in Gaming Industry
However, there is 1 country that does not seem to be doing layoffs in the game industry, namely Japan. It is rare to hear of studios from that country being hit by mass layoffs. Even Hidetaka Miyazaki, the head of FromSoftware said that he would not be doing layoffs.
In addition to Miyazaki, Capcom also increased its employees’ salaries by 28% where inflation was only 2.5%. And of course, the most legendary story by Nintendo where Satoru Iwata had to cut his salary to avoid mass layoffs. In addition, Nintendo also has a Retention Rate of 98.8% and a working period far above the standard of 14 years or more.
Japan has a fairly good legal system in protecting employees in a company. Mass layoffs are very difficult to do, unless the company is in a financial difficulty that cannot be resolved except by letting go of employees.
And this must be done after savings in various sectors have been implemented in the company. In addition, the culture in the country also makes mass layoffs rare because such a step would tarnish the company’s image.
Currently, more than 10,000 employees have been laid off worldwide in the Games Industry. This number is likely to continue to grow. Will 2024 be the highest record for layoffs in gaming history?
Also read other interesting information from Gamebrott related to News or other articles from Javier Ferdano. For further information and other inquiries, you can contact us via author@gamebrott.com
