2024 was a year filled with mixed emotions, as we saw some great advancements in the field of gaming, however, while also seeing human resource cuts across the globe. This has sadly continued to 2025, where the gaming industry is already facing a wave of layoffs as companies adapt to changing market conditions.
Restructuring efforts, cost-cutting measures, and shifting priorities have led to job cuts across various studios. These changes highlight the challenges faced by developers and publishers in balancing growth and sustainability. Below is a list of notable layoffs this year.
Gaming Industry Layoffs in 2025
From big studios to smaller game development teams, whether in mobile or AAA games, the industry saw changes that got everyone talking. These layoffs were influenced by industry trends, economic challenges, and company decisions. Here’s a look at the key details about the layoffs in 2025.
| Company | Date | Layoffs | Description |
|---|---|---|---|
| Netmarble F&C | Jan 02, 2025 | 20~ | Netmarble reportedly laid off 20 staff from the development team of Demis Reborn. |
| Jar of Sparks | Jan 06, 2025 | Unknown | Jar of Sparks halted work on its current title while searching for a new publishing partner, with its team exploring new opportunities. |
| Piranha Games | Jan 13, 2025 | 38-69 | Toadman Interactive shuts down, and Piranha Games laid off 38 employees. A total of 69 workers were impacted by this closure. |
| Freejam | Jan 13, 2025 | Unknown | Freejam, the developer of Robocraft 2, has shut down, citing market conditions and server costs. |
| Microsoft | Jan 15, 2025 | Unknown | Microsoft reportedly had layoffs across gaming, security, and sales divisions. |
| MachineZone | Jan 16, 2025 | 89 | Machine Zone lays off 89 employees, including CEO Thomas Wells. |
| Soul Assembly | Jan 16, 2025 | Unknown | Soul Assembly cuts 15% of its workforce. CEO David Solari says the move was necessary to position the company for future success. |
| Huuuge Games | Jan 17, 2025 | 122 | Huuuge Games cuts 29% of its workforce, affecting 122 employees, and shuts down studios in the Netherlands and Finland. |
| Reflector | Jan 22, 2025 | Unknown | Reflector CEO confirms layoffs as Unknown 9: Awakening failed to meet expectations. |
| Fast Travel Games | Jan 22, 2025 | 60%~ | Former Release Manager at Fast Travel Games confirmed the company’s layoff details. |
| Phoenix Labs | Jan 27, 2025 | Unknown | Phoenix Labs lays off most of its staff, calling it a necessary operational change. |
| MoonActive | Jan 28, 2025 | Unknown | Moon Active hit by mass layoffs, with staff from Lithuania, Poland, Armenia, Ukraine, Türkiye, and Israel affected. |
| Midnight Society | Jan 30, 2025 | 55 | Midnight Society shuts down, cancelling DEADROP and laying off 55 developers. |
| Iron Galaxy Studios | Feb 5, 2025 | 66 | Iron Galaxy has laid off 66 developers, calling it a ‘last resort’ to withstand the industry’s recent wave of layoffs. |
| Probably Monsters | Feb 5, 2025 | Unknown | ProbablyMonsters confirmed layoffs after ending some projects. |
| Hi-Rez | Feb 6, 2025 | Unknown | Hi-Rez Studios and the SMITE team faced massive layoffs, with many employees announcing their departure. |
| nDreams | Feb 6, 2025 | Unknown | nDreams has opened a new studio, Compass, while shutting down two others leading to layoffs. |
| Unity | Feb 11, 2025 | Unknown | Unity cuts jobs once again as it makes “important organisational changes” as per internal mail. |
| Crytek | Feb 12, 2025 | ~60 | Crytek announced cut 15% of its workforce, putting Crysis 4 on hold. |
| 10:10 Games | Feb 17, 2025 | Unknown | 10:10 Games reportedly affected by staff cuts following the failure of Funko Fusion. |
| Liquid Sword | Feb 17, 2025 | Unknown | Liquid Sword has job cuts for the studio’s long-term sustainability. |
| Toast Interactive | Feb 18, 2025 | Majority | Toast Interactive confirms shut down of its office. |
| Marvel Rivals (NetEase) | Feb 19, 2025 | Unknown | Marvel Rivals US support studio hit with layoffs due to organisational reasons. |
| Night School Studio | Feb 19, 2025 | Unknown | Netflix-owned Night School Studio cuts an undisclosed number of staff. |
| Bossa Games | Feb 24, 2025 | Unknown | Bossa Games affected by unknown number of staff cuts as confirmed by co-CEO. |
| Striking Distance | Mar 03, 2025 | Unknown | Striking Distance Studios lays off unknown number of staff. |
| Studio Fizbin | Mar 03, 2025 | Unknown | Reignbreaker will be Studio Fizbin’s last release as the studio shuts down after 14 years. |
| Ballistic Moon | Mar 05, 2025 | Unknown | Until Dawn remake studio Ballistic Moon effectively closed following 2024 layoffs. |
| Mountaintop | Mar 13, 2025 | Unknown | Spectre Divide developer Mountaintop shuts down six months post-launch, CEO confirmed. |
| Crystal Dynamics | Mar 27, 2025 | 17 | Crystal Dynamics lays off 17 employees to align with business needs and future plans. |
| Cyan Worlds | Mar 31, 2025 | 12 | Half of Myst developer Cyan Worlds was laid off. |
| PlaySide | Apr 03, 2025 | Unknown | PlaySide reportedly heading towards restructure and job cuts. |
| AppLovin / Machine Zone | Apr 17, 2025 | 97 | AppLovin reportedly cuts another 97 jobs, including CEO of subsidiary studio Machine Zone. |
| Nerial | April 22, 2025 | 40%~ | Devolver Digital subsidiary Nerial as part of a team restructuring. |
| Mighty Yell | April 23, 2025 | Unknown | Mighty Yell announced laying off their employees due to financial challenges. |
| Respawn | April 29, 2025 | Unknown | The EA-backed studio announced on X the decision to cancel two projects. |
| EA | April 29, 2025 | 200 | A new round of layoffs saw the cutting of 200 more employees. |
| Polygon | May 1, 2025 | Unknown | Following Valnet acquisition, numerous employees were laid off. |
| Niantic Spatial | May 29, 2025 | Unknown | A small number of cuts followed in the Niantic spin-off studio. |
| People Can Fly | June 1, 2025 | Unknown | People Can Fly suspended two projects with further layoffs. |
| Echtra Games | June 3, 2025 | Unknown | Zynga shut down Echtra Games, the development studio behind Torchlight 3. |
| Playtika | June 5, 2025 | 160~ | Cuts across Best Fiends and Redecor teams were reported. |
| Jagex | June 5, 2025 | Unknown | Alongside pausing the work on Project Zanaris, employees were laid off. |
| Outplay Entertainment | June 5, 2025 | 21~ | Outplay Entertainment reportedly laid off staff to focus on working with publishers. |
| Bend Studio | June 10, 2025 | 30%/40~ | Sony’s Bend Studio reportedly cancelled a live service project with layoffs following. |
| Cobra Mobile | June 10, 2025 | Unknown | Cobra Mobile confirmed to be liquidated by the founder. |
| The Chinese Room | June 20, 2025 | Unknown | Still Wakes The Deep developer The Chinese Room have reportedly made some layoffs. |
