Layoffs continue in gaming industry globally; 3,700 employees have lost their jobs so far in 2026

American software company ClickUp laid off 22 percent of its employees amid focus on AI.

New Delhi, June 19 (IANS). Layoffs continue in the video game industry globally and around 3,700 employees have lost their jobs so far in 2026. This information was given in the report released on Friday.

If the verified layoffs are added to the unverified cuts and studio closures, the total number of layoffs at gaming studios around the world exceeds 4,000, the trading platform reports.

The report provides figures that show that the number of layoffs in the entire technology sector in June had reached at least 1,43,378.

The US remains the main center of job cuts in the video game industry in 2026, where 2,153 jobs were eliminated, which is about 58.2 percent of the total cuts worldwide.

The biggest cut was announced by ‘Fortnite’ and ‘Unreal Engine’ maker ‘Epic Games’. It eliminated approximately 1,000 jobs, one of the largest cuts ever seen in the video game industry.

Bungie, the studio behind ‘Halo’ and ‘Destiny’, announced plans to eliminate about 400 jobs, while several other established developers and publishers also announced smaller cuts throughout the year.

It also had a bad impact on France, where hundreds of jobs were lost at four game companies. Ubisoft announced the layoff of approximately 680 jobs across multiple studios as part of a massive restructuring.

At least 257 jobs have been lost in the gaming sector in Canada, including 124 at Eidos-Montreal following the cancellation of a major AAA project. Many of the cutbacks in the gaming sector in 2026 were not limited to just reducing the number of employees, but also led to the complete closure of many studios.

Cloud and SaaS companies eliminated about 31,900 jobs in 2026, while e-commerce companies eliminated about 21,000 positions and IT services companies eliminated more than 16,700 positions. Social media platforms, enterprise software providers and fintech companies also laid off more than 10,000 employees.

–IANS

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