2026 is just getting underway, but the gaming industry is already carrying the weight of the years before it. While innovation continues to push the industry ahead, with new technologies, and ambitious projects that take in some creative risks too, along with all these comes a reality, that is, manpower.
After a turbulent 2024 and a challenging 2025, the early signs of 2026 show that the industry’s restructuring is far from over. Shifting market conditions, changing priorities, and continued cost-cutting have once again led to layoffs across companies of all sizes, from major publishers to small development teams, spanning both mobile and AAA gaming.
Gaming Industry Layoffs in 2026
Below is a closer look at the most notable gaming industry layoffs of 2026 and what they tell us about where the industry stands today.
| Company | Date | Layoffs | Details |
|---|---|---|---|
| Cloudhead Games | Jan 06, 2025 | ~70% | Canada-based VR studio Cloudhead Games announced it would lay off roughly 70% of its employees. |
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