One in four developers laid off over the past two years

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The 2026 State of the Game Industry report (SOTI)—an annual survey conducted by GDC Festival of Gaming—indicates that one in four game developers directly experienced a layoff over the past two years.

This year's report, based on responses from over 2,300 game industry professionals, provides extensive insights into topics such as layoffs, unionization, generative AI, and U.S. tariffs.

Sticking with the former, survey data shows that 17 percent of game industry professionals reported being laid off in the past 12 months. An additional 11 percent said they were laid off during the 12 months prior—a data point that lines up with the 2025 SOTI report. 

That means 28 percent respondents experienced a layoff in the past two years—with that number increasing to 33 percent when adjusted solely for those based in the United States.

Respondents who described themselves as game designers reported the highest percentage of layoffs over the past year, while those working in business operations and services disclosed the fewest redundancies. 

Related:Epic Games announces Fortnite collab program to bolster store sales

Out of those who experienced a layoff, 48 percent said they are still seeking reemployment. That includes 36 percent of those who were laid off over a year ago. Half of respondents said their current (or most recent) employer conducted layoffs within the past 12 months. 

When asked whether it feels like the tide is turning where layoffs are concerned, 47 percent of employed respondents said they are not anticipating more cuts in the coming year. 23 percent, however, said they believe more layoffs will take place, while 40 percent expressed uncertainty. 

So, what—or, perhaps, who—is to blame for the deluge of job cuts across the industry? 43 percent of respondents said their employer attributed cuts to a need to restructure, while 38 percent said their employer cited reasons such as budget cuts and market conditions. 32 percent were told a project cancellation was to blame.

Testimonies shared by a handful of respondents, however, suggested self-serving and inexperienced leaders are at fault.

"Leadership failed to see that the COVID-era boom was not permanent, [and the] company went on an acquisition spree before being acquired," said one respondent. Now, money is a lot tighter because the goldfish with the money want returns yesterday so they can funnel it into the current fad (genAI).

Another person claimed executives who "never actually worked as a developer" are now "throwing people overboard and expecting this scuttled ghost ships to keep making them money."

Related:Xbox veteran Larry Hryb joins consulting agency Fractional after Unity layoff

Game Developer and GDC Festival of Gaming are sibling companies under Informa Festivals. 

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