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 2024.
| 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. |
