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Over 14,000 Developers Expected to Lose Jobs by End of 2026, Analysts Predict

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According to updated data from the ASGC Games Industry Layoffs Tracker, the number of laid-off specialists could reach 14,259 people by the end of 2026, which is 78% higher than the initial forecast published at the beginning of the year.

In January, the tracker's authors expected about 8,025 employees to leave the industry in 2026. However, by July 26, the confirmed number of layoffs had grown to 9,781 people, and the forecast had to be revised upwards several times.

According to Amir Satvat, Business Development Director at Tencent Games, who maintains the statistics, the pace of layoffs has been significantly higher than expected.

The rate of layoffs is increasing faster than our initial models predicted.
Amir Satvat, Tencent Games.

As of July 10, the forecast was 13,878 layoffs, but in just over two weeks, the expected number increased by another 381 people. The revision was influenced by new waves of layoffs at several studios, including ZA/UM (32 employees), 11 Bit Studios (20 people), Ubisoft Barcelona (51 employees), and Red Rover Interactive (22 people).

The previous major recalculation of statistics followed a massive wave of layoffs in Xbox's gaming division. At that time, the cuts affected about 1,600 employees at Obsidian Entertainment, Bethesda, id Software, and ZeniMax Online Studios.

The largest share of layoffs is in North America. The region accounts for 66% of all layoff cases and 79% of all employees who lost their jobs. Of these, 48% are in the USA, and another 17% are in Canada. Europe's share is about 30%, and together, North America and Europe account for 95% of all layoffs in the gaming industry.

If the forecast proves true, 2026 will be one of the toughest years for the industry, approaching the anti-record of 2024, when, according to ASGC estimates, 15,631 jobs were cut. For comparison, in 2025, the number of layoffs decreased to 9,197 people, but the current dynamics indicate a new round of crisis. According to analysts' calculations, the cumulative number of layoffs in the gaming industry will approach 60,000 people between 2022 and 2026.