Video Game Layoffs Reach 6,159 in 2026, With Epic, Ubisoft and Bungie Among Hardest Hit

New TradingPlatforms research shows gaming remains one of the most affected areas of the technology sector as studios cut jobs, close teams and rethink development costs.

30 September 2026 — Video game companies have recorded 6,159 layoffs globally so far in 2026, according to new research from TradingPlatforms, placing the sector ninth among the hardest-hit areas of the wider technology industry.

The analysis draws on layoff tracking sites including TrueUp and TechCrunch, alongside state WARN filings and company announcements. Across the technology sector as a whole, TradingPlatforms recorded 182,604 layoffs since the start of the year, with Cloud & SaaS accounting for the largest share at 42,149.

Within gaming, Epic Games recorded the highest number of layoffs at 1,000, followed by Ubisoft with 680 and Bungie with around 400.

Epic Games records the largest gaming layoffs

Epic Games, publisher of Fortnite and Rocket League, recorded more than 1,000 layoffs in 2026, according to the report.

TradingPlatforms says the cuts followed weaker Fortnite engagement and broader efforts to reduce spending, with Epic also identifying more than $500 million in savings through lower contracting and marketing costs and the removal of some open roles.

The reductions represent around 20% of Epic Games’ workforce, according to the research.

Ubisoft continues restructuring

Ubisoft recorded 680 layoffs across several rounds of restructuring.

The largest round came in June, when an internal memo confirmed the closure of its Winnipeg and Belgrade studios and consultation over its Barcelona operation, with up to 380 employees potentially affected.

Earlier in the year, 105 employees were reported to be leaving Red Storm Entertainment, while the closure of Ubisoft Halifax affected a further 71 workers.

The repeated cuts reflect the pressure large publishers are under to reduce fixed development costs and focus resources on fewer projects.

Bungie cuts around 400 jobs

Bungie recorded approximately 400 layoffs, according to TradingPlatforms.

The reductions affected a significant proportion of the studio’s remaining workforce after Sony Interactive Entertainment confirmed further restructuring in June.

The report says the cuts affected much of the Destiny team and some staff working on Marathon, following Bungie’s decision to reduce live-service support for Destiny 2.

The latest round represents the studio’s third major workforce reduction since Sony acquired Bungie for $3.6 billion in 2022.

Microsoft-owned studios also affected

Several Microsoft-owned gaming businesses also appear among the largest job cuts recorded this year.

ZeniMax Online Studios cut 213 roles, ZeniMax Media 166 and id Software 136, while Bethesda Game Studios recorded 22.

TradingPlatforms says these businesses collectively account for 537 layoffs.

The report also notes Microsoft’s wider plans to eliminate thousands of jobs across its operations, with a large share affecting gaming and Xbox teams.

Top gaming companies by layoffs in 2026

Studio closures add to the pressure

Layoffs have also been accompanied by studio closures.

TradingPlatforms identified Atomic Arcade, Bluepoint Games, MidSummer Studios and Polyarc among studios that closed or announced plans to shut down during 2026.

Douze Dixièmes was also reported to be closing, while Build a Rocket Boy was reported in September to be winding down operations following layoffs.

Studio closures suggest the current correction is affecting not only headcount but also the number of teams and projects that remain active across the industry.

Industry shifts from expansion to tighter cost control

Stanislava Savisheva, analyst at TradingPlatforms, said the current wave of restructuring follows years of aggressive hiring and investment across the gaming sector.

After years of aggressive hiring and heavy investment in projects expected to generate blockbuster returns, video game studios are now under pressure to prove that their teams and projects can deliver sustainable revenue.

She added that this has reduced tolerance for underperforming games, delayed releases and overlapping development teams.

The result, according to the report, may be a smaller and more cautious development environment, with publishers concentrating more heavily on established franchises and fewer experimental projects.

Gaming remains one of tech’s most affected sectors

Gaming ranks ninth among the technology sectors most affected by layoffs this year.

Cloud & SaaS leads with 42,149 job cuts, followed by E-commerce & Marketplaces at 23,056 and IT Services at 16,825.

For gaming companies, the current restructuring reflects a broader reassessment of development costs, live-service strategies and the economics of running large global studios.

For players, that could eventually mean fewer new releases, longer development cycles and greater reliance on established franchises.

About the research

TradingPlatforms analysed data from multiple layoff tracking websites, including TrueUp and TechCrunch, together with state WARN filings and publicly reported workforce reductions.

The figures cover confirmed or reported layoffs since January 2026 and are accurate to the time of publication.

About TradingPlatforms

TradingPlatforms.co.uk is a personal finance and market research platform providing analysis on financial markets, technology and industry trends.