So far, every video game layoff and studio closing in 2026

Studies behind Battlefield 6 they have joined the most unfortunate trend of the gaming industry. The video game industry has faced a difficult situation in recent years as layoffs and studio closings have affected developers in nearly every corner of the medium. Even as a major release Battlefield 6 continue to sell millions of copies and the global gaming market remains one of the most profitable entertainment industries in the world, many studios have continued to downsize or shut down altogether.

These cuts were not isolated to a single corner of the industry. Major publishers, indie studios and live service developers have all reported layoffs in recent months, sometimes within weeks of new releases or major announcements. In some cases, teams have shrunk between development cycles. As 2026 continues, the list of affected companies continues to grow. This reflects an industry that continues to navigate uncertain times despite continued commercial success.

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Video game layoffs and studio closure in 2026

January 2026

The year began with several studios already downsizing or restructuring their teams. These early-year layoffs in gaming mirrored a trend that had already taken hold across the industry in previous years, with many companies continuing to adjust headcount following major development cycles.

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  • The Game Band | January 5, 2026: Developers behind Blazeball turn off the game after firing employees
  • Cloudhead Games | January 6, 2026: A veteran VR studio in the background Pistol whip laid off 70% of its employees.
  • Ubisoft Halifax | January 7, 2026: Studio Halifax recently joined the union as Ubisoft laid off 71 employees.
  • Sanzaru, Armature and Twisted Pixel Games | January 13, 2026: All three VR studios were shut down by Meta.
  • Camouflage | January 13, 2026: Much of the studio, including studio heads, was laid off.
  • Playtika | January 14, 2026: 500 employees were laid off, resulting in a 15% reduction in headcount.
  • iLLOGIKA Studios | January 15, 2026: Ten jobs were reportedly affected.
  • Raccoon Logic | January 15, 2026: Redundancies reported (exact number unknown)
  • Moonshot Games | January 16, 2026: Dreamhaven did not disclose the number of jobs affected by the cut.
  • Stoic Games | January 16, 2026: Eight jobs were affected.
  • Games | January 16, 2026: Leikir Games ended earlier this year.
  • Starbreeze | January 21, 2026: Reportedly, the layoff affects Starbreeze Payday 3 team.
  • Secret Dimension | January 25, 2026: The number of affected independent studio employees is currently unknown.

February 2026

Ubisoft Montpellier was evacuated after a bomb threat via Ubisoft

February saw a spike in layoffs and closings, affecting both major labels and independent studios.

  • Manticore Games | February 2, 2026: Reported staff reductions
  • Intrepid Studios | February 2, 2026: The Ashes of creation The future of the MMO seems to be in limbo as the board has laid off around 200 people. Its creative director and co-founder of the studio, Steven Sharif, resigned in protest.
  • Sumo Digital | February 5, 2026: Reported layoffs (number not confirmed)
  • Riot Games | February 9, 2026: Roughly 80 employees were affected by the restructuring of the teams associated with the upcoming projects.
  • Wild Fun | February 11, 2026: According to some reports, less than 20 employees remain with Wildlight and with them High Guardian's looming shutdown, that number certainly seems accurate.
  • Entertainment Hinterland | February 11, 2026: About 10 layoffs were reported
  • 10 chambers | February 12, 2026: Layoffs reported GTFO developer
  • Atomic Arcade | February 16, 2026: Hasbro and Wizards of the Coast shut down Atomic Arcade, reportedly affecting 70 employees.
  • Bluepoint Games | February 19, 2026: Sony announced in February that Bluepoint Games was ending in March.
  • MidSummer Studios | February 20, 2026: The studio has announced that it is shutting down completely.
  • Odyssey Interactive | February 20, 2026: About 15 layoffs were reported.
  • Ubisoft Toronto | February 20, 2026: Approximately 40 roles affected by layoffs.
  • TiMi Montreal | February 23, 2026: The studio was shut down by Tencent.
  • Full Circle | February 26, 2026: The Skate developer reportedly affected by layoffs.
  • iWOT Games Montreal | February 26, 2026: About 20 employees are affected.

March 2026

battlefield 6 soldiers firing their weapons while behind cover Image via EA

Although the year is still going on, some significant changes announced at the beginning of the year are expected to come into effect in March. More layoffs may occur throughout the month as the companies continue to restructure teams around ongoing projects and upcoming releases.

  • Bluepoint games: About 70 employees will be affected after Sony shuts down Bluepoint Games (closure expected to take effect in March)
  • Battlefield Studios: Despite Battlefield 6 became the best-selling game of 2025, and the layoffs still affected teams working across the franchise's development structure.

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Recent industry data highlights how widespread the problem has become. A survey conducted for the 2026 State of the Game Industry Report, organized by the Game Developers Conference, found that roughly one-third of U.S. game industry workers said they had been laid off in the past two years. The survey collected responses from more than 2,300 industry professionals across development, publishing, marketing and investment roles.

While the number is declining worldwide, the trend remains significant. Around 28% of respondents worldwide said they had been made redundant, and around half said their current or last employer had made them redundant in the past 12 months. These figures provide a sobering background to the events that took place even in the first months of 2026.

An industry that is growing, layoffs that speak differently

Although the video game industry continues to change globally, the past few years have shown that growth does not necessarily translate into job security for the people who make these games. A survey by the Game Developers Conference suggests that layoffs have become so widespread that many developers now expect them to be a normal part of the industry cycle. As studios adapt to changing budgets, evolving business models and post-pandemic market corrections, downsizing is becoming an increasingly common strategy.

With 2026 still a few months away, the list of layoffs and studio closings may continue to grow. Many developers hope that the industry can eventually find a more sustainable balance: one where success in the marketplace leads to more stability for the people who make the games that players love.


Battlefield 6 label page cover

Battlefield 6

9/10

Released

October 10, 2025

ESRB

Mature 17+ / Blood and gore, intense violence, strong language, in-app purchases, user interaction

Developers

Battlefield Studios


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