What affect did layoffs have on the Gaming Industry?

The year 2024 is just about to end and when we look back on the rising trends, we can see drastic shifts in the gaming eco-system. With several positive changes, the most negative shift that the gaming industry has seen is the increasing rate at which the company staffs have been laid off. The count for the year 2024 is even higher than what was seen in the year 2023. In the month of February 27th, Sony laid off nine-hundred employees worldwide, which was just 8%, belonging to the gaming sector. Following this, on February 28th, Electronic Arts laid off 5% of its work force which were about 670 employees. Similarly, there are several other esports companies who have laid off their employees from their workforce, due to various reasons.  

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Who are most affected by the Lay-offs? 

If we look into the statistics, based on the seniority level, it has been seen that people who hold posts in the senior level, the ratio of lay-off is comparatively lower. On the other hand, for employees who are in junior or mid-level position, the rate of lay-offs are higher. Infact, the recovery rate of employees of the junior and mid-senior level, and the senior level are also different. It is seen that the juniors and mid-senior level employees are facing much more difficulty in acquiring jobs and getting hired than the once in the higher levels.  

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What is the reason behind the Layoffs? 

The Gaming industry have been going through major shifts in the recent years. During the Covid-19 pandemic, the Gaming industry saw a tremendous generation of revenue and growth. Owing to this, the flourishing gaming industry had increased the expectations of the stake-holders manifold, resulting in giving large-scale employment opportunities to talent across the world. With the change in the economic diaspora and the gaming spectrum, the Gaming industry is coming to a situation where there is a need for balance. There are several companies who are facing economic and financial deficit, due to cancellation of projects and negative reviews by the audience, leading to a deficit in company resources.  

It is important for the Gaming industry to maintain balance and face the reality. Planning for the future and thinking about what can be the next best approach can be the only solution to help retain potential employees and safeguard projects from crumbling down.