One in four developers laid off over the past two years

The 2026 State of the Sport Trade report (SOTI)—an annual survey performed by GDC Competition of Gaming—signifies that one in 4 recreation builders immediately skilled a layoff over the previous two years.

This 12 months’s report, based mostly on responses from over 2,300 recreation business professionals, supplies in depth insights into subjects corresponding to layoffs, unionization, generative AI, and U.S. tariffs.

Sticking with the previous, survey information exhibits that 17 % of recreation business professionals reported being laid off prior to now 12 months. An extra 11 % stated they had been laid off in the course of the 12 months prior—an information level that traces up with the 2025 SOTI report. 

Meaning 28 % respondents skilled a layoff prior to now two years—with that quantity growing to 33 % when adjusted solely for these based mostly in america.

Respondents who described themselves as recreation designers reported the best share of layoffs over the previous 12 months, whereas these working in enterprise operations and companies disclosed the fewest redundancies. 

Associated:Analyzing the 2026 GDC State Of The Trade Report – Sport Developer Podcast Ep. 63

Out of those that skilled a layoff, 48 % stated they’re nonetheless looking for reemployment. That features 36 % of those that had been laid off over a 12 months in the past. Half of respondents stated their present (or most up-to-date) employer performed layoffs inside the previous 12 months. 

When requested whether or not it feels just like the tide is popping the place layoffs are involved, 47 % of employed respondents stated they don’t seem to be anticipating extra cuts within the coming 12 months. 23 %, nevertheless, stated they consider extra layoffs will happen, whereas 40 % expressed uncertainty. 

So, what—or, maybe, who—is responsible for the deluge of job cuts throughout the business? 43 % of respondents stated their employer attributed cuts to a have to restructure, whereas 38 % stated their employer cited causes corresponding to price range cuts and market circumstances. 32 % had been informed a challenge cancellation was responsible.

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

“Management did not see that the COVID-era increase was not everlasting, [and the] firm went on an acquisition spree earlier than being acquired,” stated one respondent. Now, cash is quite a bit tighter as a result of the goldfish with the cash need returns yesterday to allow them to funnel it into the present fad (genAI).

One other individual claimed executives who “by no means really labored as a developer” at the moment are “throwing folks overboard and anticipating this scuttled ghost ships to maintain making them cash.”

Associated:Ubisoft veteran says they had been suspended for public feedback on return-to-office coverage

Sport Developer and GDC Competition of Gaming are sibling firms beneath Informa Festivals.