Video game industry layoffs in 2026: the headline numbers
Video game industry layoffs in 2026 have already cost more than 12,000 known jobs, with 35 studios shut and 161 studios hit by cuts of some kind, according to Insider Gaming's running tally dated October 22, 2026. The outlet says the real job total is likely nearer 13,000 to 14,000, because many layoffs are never disclosed.
Those figures come from GamingLayoffs.com, a tracker that Insider Gaming's editor says he created and operates. That matters for how much weight to put on any single number: it is an independent, journalist-run count, not an official statistic, and no body such as a trade association publishes a definitive one.
What the tally does show is scale and breadth. The cuts reach publishers, platform holders, mid-size independents and tiny teams, and the closures include studios with well-known games behind them.
How 2026 compares with 2022 to 2025
The yearly totals on Wikipedia's page for the 2022 to 2025 layoffs give a baseline: 8,500 job losses in 2022, 10,500 in 2023, 15,650 in 2024 and 9,200 in 2025. The page cites several trackers and estimates rather than one, and puts the overall total at about 45,000 jobs lost from 2022 to July 2025.
Against that, 2026 is already above the whole of 2025 at over 12,000 jobs and, if Insider Gaming's 13,000 to 14,000 estimate holds, will finish between 2023 and 2024's peak. Different trackers count differently, so this comparison shows direction, not precision.
The honest summary is that the industry's contraction did not end in 2025. It has continued into 2026 and, in the last few weeks, accelerated at the biggest companies.
“closing the studio and our Edmonton workspace”
The 35 video game studio closures of 2026, month by month
Counting from Insider Gaming's table, closures peaked in June, with nine studios named that month, including Ubisoft Winnipeg and Ubisoft Belgrade (both June 10), Vertigo Games Amsterdam (June 9), Big Bad Wolf (June 15) and Rec Room Inc. (June 1). February had six, led by Bluepoint Games on February 19, and January had five, among them Armature Studio, Sanzaru Games and Twisted Pixel Games, all on January 13.
The other months were quieter: March three, April two, July two, August two and September two, with none logged in May. October already has four, including RedLynx (October 14), Liquid Swords (October 19) and BioWare (October 21). That month-by-month split is our own arithmetic from the table, which lists 35 entries in total.
The studios lost range widely: Night School Studio, maker of Oxenfree, closed on August 13; Polyarc, maker of Moss, on September 11; and Build a Rocket Boy, the studio behind MindsEye, on September 16.
BioWare and Xbox: the October shock
The biggest single story this month is Electronic Arts closing BioWare. In a memo published on October 21, 2026, EA said it is "closing the studio and our Edmonton workspace" and that it had "made the decision not to move forward with this development" on the next Mass Effect. Bloomberg, as relayed by trade press, puts the overall EA cuts at about 400 jobs.
EA's memo says the company will keep funding its FC franchise, Battlefield, Apex, Marvel's Iron Man, the next Star Wars Jedi game and The Sims, and that it will "support impacted employees in exploring other opportunities within EA". It did not give a headcount in the memo itself.
At Xbox, Fortune reported on October 20 that 1,868 jobs have been cut under CEO Asha Sharma, with a plan to reduce headcount by 3,200 over the next year. Microsoft has not confirmed that 3,200 figure in the sources we read, and Fortune says the plans can change.
Epic, Ubisoft, Bungie and Microsoft: the big names behind the numbers
Beyond the studio closures, much of the job total comes from large layoffs at household names. Headlines collected in Wikipedia's reference list include Epic Games cutting over 1,000 employees in March 2026 (reported March 24, with a Fortnite downturn cited in coverage), Ubisoft cancelling six games and delaying seven in January, and Sony confirming significant Bungie layoffs on June 25, including most of the Destiny team and some Marathon team members.
Microsoft is the other big contributor. Wikipedia's list cites a July 6, 2026 Reuters headline, "Microsoft to cut 4,800 jobs, overhaul Xbox unit", and 136 layoffs confirmed at id Software on July 8. That 4,800 figure covers Microsoft broadly, while Fortune's 3,200 is an Xbox-specific plan, so the two should not be added together. We have only seen these as headlines in a reference list, not the full articles.
These cases show why the studio-closure count and the job count move differently. A single large layoff can dwarf a dozen closures of small independent teams, while a closure of a tiny team may involve only a handful of people and never be reported with a headcount.
The Ubisoft cuts also hit the share price. Wikipedia's reference list cites a January 22 Cinco Dias headline reporting that Ubisoft's stock fell 39 percent after it cut forecasts and cancelled six games, and a PC Gamer report of a full return-to-office order alongside confirmation that more studio closures were coming. Money markets, not only game sales, are now part of how these decisions get made.
Microsoft's cuts did not begin in 2026 either. Wikipedia records that significant layoffs across Microsoft's gaming division were confirmed by Xbox boss Phil Spencer in a memo on July 2, 2025, alongside the closure of The Initiative and the cancellation of Perfect Dark, Everwild and a ZeniMax new IP, and that ZeniMax Online's founder quit on January 5, 2026 after Microsoft shut down Project Blackbird.
Why games companies keep cutting jobs
Wikipedia's account of the 2022 to 2025 wave lists several causes that still apply. Companies over-expanded during the pandemic, acquired aggressively and then hit slower growth; AAA budgets climbed, with some 2024 and 2025 releases reportedly exceeding $200 million; higher interest rates made funding harder; and live-service games faced player fatigue.
Mergers added to the pressure. Embracer Group's headcount fell from about 15,700 to 7,900 as it closed or divested 44 studios, and Microsoft's purchase of Activision Blizzard was followed by repeated rounds of cuts across 2024, 2025 and 2026.
None of those drivers has gone away, which is why analysts treat the current figures as a continuation rather than a one-off. A studio closure is also a lagging indicator: the decision is often taken months after a game underperforms or a funding round fails.
What studio closures mean for players
For players, the immediate cost is cancelled or orphaned games. EA's decision not to proceed with the next Mass Effect is a clear example: a long-running series loses its original studio and its next entry. Smaller closures often mean unreleased projects never ship and live games lose their support teams.
There are two cautions. First, a closure does not always shut down existing games, and many servers keep running after the studio behind them is gone. Second, publishers often keep or sell the IP, so a franchise can return under another team, as Respawn and DICE reportedly collaborating on a Star Wars Battlefront project shows, though that remains unconfirmed by EA.
Earlier waves left a visible mark on the same names. Wikipedia's page records 530 Riot Games layoffs in January 2024, about 11 percent of staff, 900 at Sony Interactive Entertainment in February 2024 along with the closure of Firewalk Studios after Concord failed, and 670 at Electronic Arts that same month. Seen alongside 2026, that suggests the cuts are recurring rather than isolated.
How to read layoff trackers, and what to watch next
Treat any tracker as a floor, not a ceiling. Insider Gaming itself says the true job total is probably above its 12,000 figure, and Wikipedia's page combines several sources that count differently. Check whether a number counts jobs, studios or both, and whether it includes closures announced but not completed.
Next to watch: Xbox's planned rounds in November and January, per Fortune's reporting, and whether EA's cuts widen. We will update this explainer as new closures are confirmed by primary sources, and the numbers above are as of October 22, 2026.
Frequently asked
How many video game industry layoffs have there been in 2026?
Insider Gaming's tracker, updated October 22, 2026, counts over 12,000 known jobs lost this year and 161 studios hit by layoffs, with the real job number likely 13,000 to 14,000. The tracker is run by the outlet's editor, so it is a journalist-led count rather than an official statistic, and other trackers produce different totals depending on how they count.
How many video game studios have closed in 2026?
Insider Gaming lists 35 studio closures so far in 2026, as of October 22. The latest include BioWare on October 21, Liquid Swords on October 19 and RedLynx on October 14. The list covers independents and subsidiaries of larger publishers, and it only includes closures that were publicly reported, so the true number may well be higher than 35.
Why is BioWare closing?
EA announced the closure on October 21, 2026 in a memo saying it is "closing the studio and our Edmonton workspace" and not moving forward with the next Mass Effect. EA did not give a single stated cause in the memo beyond focusing investment on other franchises such as FC, Battlefield, Apex, The Sims and the next Star Wars Jedi game.
Is 2026 worse than 2024 for games industry layoffs?
Not yet, on the numbers we have. Wikipedia's tally puts 2024 at 15,650, the peak, versus 9,200 for 2025. Insider Gaming counts over 12,000 known jobs in 2026 so far and estimates 13,000 to 14,000 for the year. Different trackers use different methods, so the comparison is directional only and could change before the year ends.
How many jobs is Xbox cutting?
Fortune reported on October 20, 2026 that 1,868 Xbox jobs have been cut under CEO Asha Sharma, with a plan to cut 3,200 over the next year. Microsoft has not confirmed the 3,200 figure in the sources we read, and Fortune says plans can change, with further rounds reported for November and January, so treat the total as a moving target.
What causes layoffs in the video game industry?
Wikipedia lists several drivers: over-hiring during the pandemic, large acquisitions that proved hard to sustain, rising AAA budgets, higher interest rates that made funding harder, and live-service fatigue. Mergers such as Embracer Group's expansion, which later closed or divested 44 studios, added restructuring on top, and Microsoft's Activision Blizzard purchase was followed by repeated rounds of cuts.