A new survey released as part of the 2026 Game Developers Conference (GDC) State of the Game Industry Report paints a bleak picture for game developers, particularly in the United States. According to responses from over 2,300 industry professionals, 28% of global games workers—and 33% in the US—have been laid off in the past two years, highlighting the ongoing instability facing the sector.
The report shows that layoffs remain widespread and persistent. Seventeen percent of respondents were laid off in just the last 12 months, and half said their current or most recent employer conducted layoffs during the same period. Since early 2023, more than 16,000 games industry jobs have been lost, driven by post-pandemic contraction, overexpansion during the Covid-era boom, and aggressive corporate restructuring.
For those affected, recovery has been difficult. Nearly half (48%) of laid-off workers say they have been unable to find new employment, with many citing tighter budgets, shifting investment priorities, and growing focus on AI over traditional development. The instability has also discouraged newcomers: 74% of surveyed students and 87% of educators expressed concern about future job prospects, signaling that confidence in the industry’s long-term health continues to erode.
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