12 March 2026

Every Video Game Layoff and Studio Closure in 2026 So Far

By newsgame

The studios behind Battlefield 6 have joined the gaming industry’s most unfortunate trend. The video game industry has faced a difficult stretch over the past few years as layoffs and studio closures have affected developers across nearly every corner of the medium. Even as major releases like Battlefield 6 continue to sell millions of copies and the global games market remains one of the most profitable entertainment industries in the world, many studios have still reduced staff or shut down entirely.

Those cuts have not been isolated to a single corner of the industry. Major publishers, independent 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 downsized between development cycles. As 2026 continues, the list of affected companies keeps growing. This reflects an industry still navigating an uncertain period despite its continued commercial successes.

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Video Game Layoffs and Studio Closures in 2026

January 2026

The year began with several studios already making staffing cuts or restructuring their teams. These early-year layoffs in gaming reflected a trend that had already taken hold across the industry in previous years, with many companies continuing to adjust staffing levels after major development cycles.

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The Game Band | January 5, 2026: The devs behind Blaseball shut down the game after staff layoffs
Cloudhead Games | January 6, 2026: The veteran VR studio behind Pistol Whip laid off 70% of its staff.
Ubisoft Halifax | January 7, 2026: The Halifax studio had recently unionized when Ubisoft laid off 71 employees.
Sanzaru, Armature, and Twisted Pixel Games | January 13, 2026: All three VR studios were shut down by Meta.
Camouflaj | January 13, 2026: A large portion of the studio, including studio heads, was let go.
Playtika | January 14, 2026: 500 employees were laid off, resulting in a 15% workforce reduction.
iLLOGIKA Studios | January 15, 2026: Reportedly, ten jobs were affected.
Raccoon Logic | January 15, 2026: Layoffs reported (exact number unknown)
Moonshot Games | January 16, 2026: Dreamhaven has not disclosed the number of jobs affected by this cut.
Stoic Games | January 16, 2026: Eight jobs were affected.
Leikir Games | January 16, 2026: Leikir Games shut down earlier this year.
Starbreeze | January 21, 2026: Allegedly, Starbreeze layoffs affect the Payday 3 team.
Secret Dimension | January 25, 2026: The indie studio’s number of affected employees is currently unknown.

February 2026

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February saw a sharp increase in layoffs and closures affecting both large publishers and independent studios.

Manticore Games | February 2, 2026: Staff reductions reported
Intrepid Studios | February 2, 2026: The Ashes of Creation MMO’s future seems in limbo as the Board of Directors laid off around 200 people. Its creative director and studio co-founder, Steven Sharif, resigned in protest.
Sumo Digital | February 5, 2026: Redundancies reported (number not confirmed)
Riot Games | February 9, 2026: Roughly 80 employees were affected as the company restructured teams connected to upcoming projects.
Wildlight Entertainment | February 11, 2026: According to some reports, fewer than 20 employees remain at Wildlight, and with Highguard‘s looming shutdown, this figure certainly seems accurate.
Hinterland Entertainment | February 11, 2026: Around 10 layoffs reported
10 Chambers | February 12, 2026: Layoffs reported by the GTFO developer
Atomic Arcade | February 16, 2026: Hasbro and Wizards of the Coast shut down Atomic Arcade, 70 employees were reportedly impacted.
Bluepoint Games | February 19, 2026: Sony announced in February that Bluepoint Games was shutting down in March.
MidSummer Studios | February 20, 2026: The studio announced it was closing entirely.
Odyssey Interactive | February 20, 2026: Around 15 layoffs reported.
Ubisoft Toronto | February 20, 2026: Around 40 roles impacted 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: Roughly 20 employees affected.

March 2026

battlefield 6 soldiers firing weapons while behind cover

Although the year is still unfolding, some major changes announced earlier in the year are expected to take effect in March. Additional layoffs could still emerge throughout the month as companies continue restructuring teams around ongoing projects and upcoming releases.

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

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Recent industry data highlights just 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 reported being laid off in the past two years. The survey gathered responses from more than 2,300 industry professionals across development, publishing, marketing, and investment roles.

While the number drops globally, the trend remains significant. Around 28% of respondents worldwide reported being laid off, and roughly half said their current or most recent employer had conducted layoffs in the past 12 months. Those figures provide a sobering backdrop to the events that have unfolded even in the early months of 2026.

An Industry That Grows, Layoffs That Say Otherwise

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 those games. The Game Developers Conference survey suggests layoffs have become widespread enough that many developers now expect them as a normal part of the industry cycle. As studios adjust to shifting budgets, evolving business models, and post-pandemic market corrections, workforce reductions have become an increasingly common strategy.

With several months still remaining in 2026, the list of layoffs and studio closures may continue to grow. For many developers, the hope is that the industry can eventually find a more sustainable balance: one where success in the marketplace leads to greater stability for the people who create the games players love.

Battlefield 6

9/10

Released: October 10, 2025
ESRB: Mature 17+ / Blood and Gore, Intense Violence, Strong Language, In-App Purchases, Users Interact
Developer(s): Battlefield Studios