In a move reflecting the ongoing challenges within the gaming industry, British video game developer Supermassive Games revealed plans to lay off approximately 90 employees, constituting about 30% of its current workforce. The decision, announced on February 26, 2024, comes amidst a wave of job losses that have impacted numerous gaming companies worldwide.
Following UK labour laws mandating notice for mass layoffs, the company formally notified staff members that they were “at risk” of redundancy, with 90 ultimately facing job cuts. Supermassive Games acknowledged the industry-wide challenges in a statement posted on X (formerly Twitter) saying, “It’s no secret that the games industry is currently facing significant challenges, and unfortunately we aren’t immune to this.”
It stated it was “undertaking a reorganisation” of its studio and planned to enter “into a period of consultation,” which would affect some of its employees. “This is not a decision that’s been taken lightly,” Supermassive said, “with many efforts made to avoid this outcome.” The company intends to reorganize its operations and concentrate on core strengths and forthcoming projects to ensure long-term viability.
Founded in 2008, Supermassive, a subsidiary of Nordisk Games, gained acclaim by collaborating with prominent publishers such as Sony Group Corp. and Take Two Interactive Inc. on well-received titles like cult classic horror Until Dawn, The Quarry and its Dark Pictures Anthology series. Despite the setback, the studio remains committed to ongoing projects, including anticipated releases within the Little Nightmares series and a Dead by Daylight spin-off titled The Casting of Frank Stone.
The layoffs at Supermassive Games are emblematic of broader trends affecting the gaming sector, where the gaming sector has witnessed a wave of job cuts affecting over 9,000 employees globally in the past 18 months, with the onset of 2024 continuing this trend.
Major players including Microsoft, Sony, Riot Games, Twitch, and Epic Games have undergone significant staff reductions, citing a complex interplay of factors, from pandemic-induced disruptions, economic downturn, constriction after overexpansion, mergers and acquisitions, revenue projection corrections and strategic realignments.
Microsoft’s gaming division shed 1,900 jobs in January 2024, while Sony announced 900 layoffs in February 2024 from its PlayStation division. Riot Games downsized its workforce by 11% in 2023, and even Amazon-owned Twitch experienced significant staff reductions. Last year, Epic Games let go of over 830 employees, citing shifts in its business model.
The gaming industry is experiencing unprecedented volatility, exacerbated by economic constraints, leading to intensified job competition and reduced hiring. It’s crucial to acknowledge the human toll of layoffs and prioritize support for affected employees, fostering a resilient and empathetic approach to ensure the community’s longevity and vitality.
Words by Khushboo Malhotra
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