General Gaming Layoff Roundup - 30 October 2023 Update: Bungie lays off 8% of its workforce (~100 people) following missed annual revenue target by 45%

[Commissar SFLUFAN]

CD Projekt Red to Lay Off Around 30 Employees as Gwent Development Winds Down - IGN

WWW.IGN.COM

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CD Projekt Red will lay off around 30 more employees by the end of 2023 as development on Gwent: The Witcher Card Game winds down.

 

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CD Projekt Red will lay off around 30 more employees by the end of 2023 as development on Gwent: The Witcher Card Game winds down.

 

Revealed in a blog post on Gwent's website, CD Projekt Red confirmed that "about 30 remaining Gwent team members are going to part ways" with the studio.

 

This contradicts a statement from December when the developer told IGN that a small number of employees would be kept on to keep the game running while the remaining staff would be moved to other projects at CD Projekt Red.

 

 

[SuperSpreader]

Wow 

[SuperSpreader]

Some Microsoft recruiters not getting their contracts renewed. 

[SuperSpreader]

Hi-Rez Studios restructure results in layoffs

WWW.GAMESINDUSTRY.BIZ

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Hi-Rez Studios has gone through a restructuring leading to a wave of layoffs. The company announced the change on Linke…

 

 

[SuperSpreader]

BioWare confirms layoffs as Star Wars: The Old Republic moves to new developer

WWW.ROCKPAPERSHOTGUN.COM

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BioWare have confirmed that their long-running MMO Star Wars: The Old Republic is moving to a new developer and some staff will face layoffs.

 

 

[SuperSpreader]

Microsoft confirms more job cuts on top of 10,000 layoffs announced in January

WWW-CNBC-COM.CDN.AMPPROJECT.ORG

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On top of the 10,000 layoffs Microsoft announced in January, the company is now slimming down its number of salespeople.

 

 

[Remarkableriots]

The upcoming news for all those Activision/Blizzard employees after Microsoft buys them.

Spoiler

 

 

[Commissar SFLUFAN]

CD PROJEKT RED Organizational Update - CD PROJEKT

WWW.CDPROJEKT.COM

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I have some news to share regarding the future shape of our teams and our game development philosophy. Those of you familiar with our strategy might remember that we have a lot going on at

 

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We’ve carefully assessed all teams in the company in terms of their expected contribution to the delivery of our strategy. There’s no easy way to say this, but today we are overstaffed. We have talented people on board who are finishing their tasks and — based on current and expected project needs — we already know we don’t have other opportunities for them in the next year. The outcome is the studio parting ways with around 100 people, which is roughly 9% of the entire team. This will not be immediate as some employees will be let go as late as Q1 2024 but, in the spirit of transparency, we’ve chosen to share the information now. We want team members to have ample time to process and adjust to the change, and we’ve also made sure to offer everyone a comprehensive severance package.

 

[SuperSpreader]

Striking Distance Studios

Niantic

Marvel Studios 

[Commissar SFLUFAN]

An Update on the State of BioWare – BioWare Blog

BLOG.BIOWARE.COM

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Hello again, Today, rather than discuss one of our upcoming projects, I’d like to share an update about the studio itself and outline our vision for BioWare’s future. In order to meet the needs of …

 

 

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Hello again,

 

Today, rather than discuss one of our upcoming projects, I'd like to share an update about the studio itself and outline our vision for BioWare's future.

 

In order to meet the needs of our upcoming projects, continue to hold ourselves to the highest standard of quality, and ensure BioWare can continue to thrive in an industry that's rapidly evolving, we must shift towards a more agile and more focused studio. It will allow our developers to iterate quickly, unlock more creativity, and form a clear vision of what we're building before development ramps up.

 

To achieve this, we find ourselves in a position where change is not only necessary, but unavoidable. As difficult as this is to say, rethinking our approach to development inevitably means reorganizing our team to match the studio's changing needs.

 

As part of this transition, we are eliminating approximately 50 roles at BioWare. That is deeply painful and humbling to write. We are doing everything we can to ensure the process is handled with empathy, respect, and clear communication. With that last point in mind, I want to take a moment to explain how we got here, what we're doing to support our colleagues, and what this means for BioWare's current and future games.

 

 

[Commissar SFLUFAN]

Homeworld 3 dev Blackbird Interactive lays off over 40 employees, including game director Quinn Duffy | Game World Observer

GAMEWORLDOBSERVER.COM

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Blackbird Interactive is another game studio that has been recently hit with job cuts. It appears that the Homeworld 3 developer has laid off dozens of people, including some senior staff.

 

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The job cuts at Blackbird Interactive were reported by several current and former employees on LinkedIn. According to technical artist James Marshall, the company “dismissed over 40 people.”

 

“It’s an interesting time in the games industry right now, and it’s proving tough to navigate for even well-seasoned studios,” game director Quinn Duffy, who was among those dismissed, said in a post.

 

It is worth noting that Duffy joined Blackbird in January 2022 after 24 years at Relic Entertainment. He was one of the designers of the first Homeworld, game director of Company of Heroes 2, and also served as design director of Age of Empires IV.

 

The list of Blackbird employees affected by the layoffs includes lead game designer Sean Storey, senior software engineer Joseph Hurst, design director Matthew Freedman, and concept artist Chloé G.

 

 

[Nokra]

It kind of surprises me that they're dismissing such experienced talent. It seems likely then that it's something beyond being merely budgetary, no? 

[Commissar SFLUFAN]

13 minutes ago, Nokra said:

It kind of surprises me that they're dismissing such experienced talent. It seems likely then that it's something beyond being merely budgetary, no? 

 

Dismissing such experienced senior personnel tells me that it's absolutely budgetary as they're going to be on the upper end of the salary scale.

[Commissar SFLUFAN]

More Embracer "cost rationalization" at Crystal Dynamics:

 

[Commissar SFLUFAN]

More Embracer "cost rationalization" at Beamdog:

 

Embracer makes layoffs at Mythforce developer Beamdog

WWW.GAMEDEVELOPER.COM

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Embracer purchased the studio for an undisclosed fee in April 2022.

 

[SuperSpreader]

 

Swedes like 

[Commissar SFLUFAN]

Significant job losses likely at Worms publisher Team17 - sources

WWW.EUROGAMER.NET

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UPDATE 2.45pm UK: Team17 has now confirmed it has begun "a period of consultation" ahead of the restructure reported by…

 

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Worms publisher Team17 has announced a company restructure likely to result in signficant job losses, Eurogamer understands, with the majority of the developer's internal QA (Quality Assurance) team affected.

 

The company's CEO Michael Pattison is also expected to leave, sources close to the company say.

 

Around 50 roles - the vast majority of Team17's QA department - are at risk as part of a major restructuring process, as the company opts to outsource its QA work instead.

 

The vast majority of the job losses within the QA team - indicated in a new proposed team structure document shared with staff members today - are of junior QA analyst roles.

 

Outside of QA, it's unclear to what extent other departments are also affected by restructuring plans. Eurogamer has contacted Team17 for comment.

 

 

[Kal-El814]

Such a strange year for games. There’s so much good content out there, but the business side is just atrocious. 

[Commissar SFLUFAN]

8 minutes ago, Kal-El814 said:

Such a strange year for games. There’s so much good content out there, but the business side is just atrocious. 

 

Rami Ismail said the identical thing a few days go:

 

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I'm sorry, but no amazing game will make this "a good year for games". This is an awful year for games - the atrocious effects money & shareholders & CEOs had on the industry this year lost us many incredible people, careers, and thus amazing future games for years to come.

 

This year is probably going to be the "high water mark" for a very, very long time to come that we will look back upon quite longingly as it will be all downhill from here.

[Brian]

Dragon Age Dreadwolf dev lays off all unionized QA workers | GamesRadar+

WWW.GAMESRADAR.COM

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This comes days after seven former developers sued BioWare for better severance

 

Ex-Dragon Age Devs Sue BioWare Over Denying Full Severance

T.CO

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The former employees say EA refuses to pay them what they’re owed

 

yet when the executives gets laid off, they gets a golden parachute 

[jaethos]

The QA workers headline is misleading. They were employees of a company contracted by Bioware. Bioware didn't renew the contract.

 

The actual layoffs, of many long time and senior employees, were terrible though. They pretty much got rid of all that was left of the writers that made the characters and stories that people loved old Bioware games for.

[Commissar SFLUFAN]

Full extent of Team17 cuts threaten third of the company - sources

WWW.EUROGAMER.NET

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Team17 is poised to lay off up to 91 people - a third of the company - as part of its major restructuring programme, Eu…

 

 

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Team17 is poised to lay off up to 91 people - a third of the company - as part of its major restructuring programme, Eurogamer can reveal.

 

The publisher of Worms, Dredge and Hell Let Loose confirmed it was planning to make redundancies earlier this month, after Eurogamer broke news that extensive cuts were being made to Team17's QA department in favour of outsourcing work elsewhere.

 

But the job losses go much further than those at risk in QA, Eurogamer understands, with staff across a wide range of departments affected - including those employed in Team17's marketing, usability, customer service, IT and HR teams.

 

So deep are the cuts that Eurogamer has been contacted by developers working on games set to be published by Team17 that have been left concerned about the company's ability to continue working on their project due to the sheer numbers of people likely to be made redundant, and the knowledge and skills being lost.

 

 

[Commissar SFLUFAN]

Elite Dangerous studio Frontier Developments announces layoffs 'following a period of disappointing financial performance' | PC Gamer

WWW.PCGAMER.COM

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Frontier Developments is the latest to lay off employees, following what it said was a "challenging" year.

 

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The game industry annus horribilis continued today with an announcement from Elite Dangerous studio Frontier Developments, which said that it is implementing a hiring freeze, cutting costs, and laying off an unknown number of employees.

 

"During 2023, Frontier refined its strategy to refocus on its core strengths following a period of disappointing financial performance and more challenging industry conditions," Frontier said. "The Organisational Review announced today will reshape Frontier to deliver on that updated strategic plan more efficiently, return the Company to profit, and create a sustainable foundation for the future.

 

"The review will deliver enhancements to Frontier's leadership and structure, drive efficiencies across the Company and achieve a reduction in annual operating costs of up to 20%. The cost reductions will be achieved through a recruitment freeze, spending cuts and, unfortunately, redundancies, subject to consultation."

 

 

[Commissar SFLUFAN]

There's now a blog that tracks the announced layoffs in the industry:

 

http://videogamelayoffs.com/

[chakoo]

Zen studio laid off 32 people (out of 120 something).

 

Seeing what is happening in the app/saas space, I’m wondering if games are just on a delayed shrinkage (due to release schedules) and will ramp back up on hiring at the start of the new year.

[Remarkableriots]

Tech company CEO delivers a stern warning to its remote workers

FINANCE.YAHOO.COM

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Roblox remote employees are being forced to make a tough choice: either work from home three days a week or find a new job. David Baszucki, CEO of online gaming platform Roblox...

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David Baszucki, CEO of online gaming platform Roblox, issued a memo to his over 2,000 employees yesterday warning them that remote work for most is coming to an end at the company. Remote employees (excluding required remote workers and workers with deep expertise with Roblox systems) will be asked to come back into the office Tuesday through Thursday.

Employees who refuse to return to working in the office will have until April 15, 2024, to find a new job and will receive a severance package along with six months of health care. Baszucki claims that multiple conversations led up to the decision that in-person work should continue at the company, keeping early career employees in mind.

 

[Nokra]

1 hour ago, Remarkableriots said:

Tech company CEO delivers a stern warning to its remote workers

FINANCE.YAHOO.COM

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Roblox remote employees are being forced to make a tough choice: either work from home three days a week or find a new job. David Baszucki, CEO of online gaming platform Roblox...

 

This is pretty awesome. Paid time to look for a new job AND a severance package?

[Commissar SFLUFAN]

 

 

Dreams and LittleBigPlanet studio Media Molecule is reportedly laying off 15-20% of staff | VGC

WWW.VIDEOGAMESCHRONICLE.COM

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The studio ended support for Dreams in September…

 

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Dreams and LittleBigPlanet developer Media Molecule is to lay off 15-20% of its staff, according to a new report.

 

Sports Illustrated‘s GLHF says the studio held an internal meeting today and told staff that it planned to lay off around 20 of its 135 employees.

 

The news comes a month after Media Molecule ended support for Dreams, which was released in early access in April 2019 before officially launching in February 2020.

 

 

[Remarkableriots]

Tech layoffs are back with a vengeance | TechCrunch

TECHCRUNCH.COM

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For my column this week, I told the story of how an ex-colleague was impersonated by an AI-powered spambot and almost tricked me.

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In October, Nokia announced it was laying off 14,000 employees following a quarter that saw profits drop by 69%, and other major tech companies like Qualcomm, Qualtrics, and LinkedIn also announced significant layoffs. Experts suggest that while the economy is improving, the recovery process is slow, leading many companies to prepare for a longer period of economic sluggishness. 

 

The tech industry has faced a significant blow in 2023, with job losses exceeding 240,000, a 50% increase from the previous year. Major tech giants like Google, Amazon, Microsoft, Yahoo, Meta, and Zoom, along with numerous startups, have announced significant workforce reductions.

 

[SuperSpreader]

Destiny 2 Maker Bungie Latest PlayStation Studio To Cut Staff

KOTAKU.COM

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Layoffs at Bungie come amid an industry-wide downsizing

 

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Bungie is the latest PlayStation studio to face layoffs. While the scale of the cuts wasn’t immediately apparent, multiple, now-former staff members began posting on social media on October 30 that they’d been let go by the beloved Destiny 2 maker.

 

“My heart is breaking for all affected...I am now looking for opportunities,” tweeted Destiny 2 community manager Liana Ruppert. “It’s a strange feeling to wake up in the morning excited for the week ahead, only for your day to begin learning that you’ve been hit with a Reduction in Force and are now on the job hunt,” wrote recruiting lead Amanda R. on LinkedIn.

 

 

[Commissar SFLUFAN]

Layoffs at a developer like Bungie represents a sure indication that the live-service "bubble" could very well have burst, which isn't good news for Sony who appears to have bet heavily on it.

 

From an App Formerly Known As Twitter user with an MBA who specializes in the business side of gaming:

 

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Everything I've been saying about Sony's G&NS profit margin is, unfortunately, coming true.

 

A business entity posting record revenues, only to drive a shrinking operating income (in comparison to previous results) is not a good look to investors. It screams "costs are out of control." (Before you say it, this is an industry problem, not just Sony.)  Now you see Sony trying to right the financial ship. (Ex: Layoffs, High margin products)

 

As of close March 31, 2023, Sony's G&NS operating income as a percentage of net sales had fallen to 6.9%

 

Previous March Closes:
2017:  8.1%
2018: 9.1%
2019: 13.5%
2020: 12.1%
2021: 12.9%
2022: 12.6%

 

In Q1 of the current FY (closing March 2024) G&NS had posted operating income as a percentage of revenue: 6.3%.

 

Their forecast for the current fiscal year is only 6.4%

 

[SuperSpreader]

Ubisoft London closing 

[Keyser_Soze]

[Commissar SFLUFAN]

53 minutes ago, Keyser_Soze said:

 

That last bullet point is directly related to the $1.2 billion (of the $3.7 billion acquisition price) that Sony paid for "staff retention" and would disproportionately impact senior staff members like Salvatori who probably had a non-insignificant amount of unvested stock.

 

Bungie (and by extension, Sony) essentially "claws back" whatever is left of that $1.2 billion that wasn't fully vested.

[Commissar SFLUFAN]