2025 Gaming Layoffs Continue, But 79% of Developers Feel ‘Positive’ About AI’s Impact

• Despite the gaming industry suffering massive layoffs over the past few years, the trend has continued into 2025.
• A growing number of game developers view artificial intelligence as a positive force, even as its rise coincides with widespread job cuts.
• Gamers remain skeptical about the use of AI tools.

The video game industry has faced significant upheaval in recent years, with mass layoffs affecting major companies, such as Microsoft Gaming, Electronic Arts and Sony Interactive Entertainment.

Despite this, a new report has found that the majority of gaming developers support implementing artificial intelligence (AI) into game development.

Gaming Layoffs Continue Into 2025

Ubisoft Leamington, the British arm of French video game giant Ubisoft, announced its official closure last week.

“After many incredible years, we want to share the news that Ubisoft Leamington has officially closed its doors,” the studio wrote on LinkedIn.

Reports of the closure first came in January, as the company planned to reorganize its workforce across Europe, affecting over 200 employees.

The video game giant said its goal was “to prioritize projects and reduce costs that ensure long-term stability at Ubisoft.”

Meanwhile, Canadian video game developer Eidos-Montréal plans to lay off “up to 75 valuable members.”

The developer, which is currently supporting work on the highly-anticipated Fable reboot, said it does not “have the capacity to entirely reallocate them to our other ongoing projects and services.”

It added that the layoffs were not a “reflection of their dedication or skills.”

Signs of Recovery?

Despite several layoffs throughout the year already, gaming hiring champion Amir Satvat said that layoffs have slowed down in the first few months of 2025.

Satvat has created a pool of resources to help people gain employment in the games industry, aiding over 3,000 people find jobs.

The gaming expert predicted in January that hiring would exceed firing for the first time in around 30 months, which came true.

In a post on LinkedIn , Satvat wrote:

“I can tell you this: based on the best available actuals, known likely scenarios, all our community data (millions of lifetime observations across many categories), and time series forecasting, 2025 games layoffs (actuals + forecast) are currently trending at 6,145 versus the initial forecast of 9,769 — in terms of the expected layoffs for 2025 in gaming.”

Satvat said that while there will likely be ups and downs, this was the most “encouraging gap between trend and projection” he had seen since sharing the exercise in the second half of 2024.

2024: A Tough Year for Gaming

2024 was one of the worst years for the gaming industry, with an estimated 14,600 job losses, which surpassed the 10,500 layoffs reported in 2023.

Major companies, including Electronic Arts, Ubisoft and Bungie, implemented significant workforce reductions.

According to a survey by the Game Developers Conference, one in ten developers was laid off in 2024.

Throughout the year, 41% of developers were directly impacted by layoffs, compared to 35% in 2023, the report stated.

In March, hundreds of video game workers joined the newly formed United Videogame Workers Union in response to widespread job losses across the industry, Bloomberg reported .

The union aims to advocate for standardized workplace rights, including healthcare and fair hiring practices. It follows U.S. President Donald Trump signing a far-reaching executive order that aimed to reduce the power of union contracts.

AI’s Impact on Gaming

When ChatGPT and other generative AI tools first entered the spotlight, many game developers and gamers expressed concern that creativity in the industry could be compromised.

As with other creative fields, fears centered on AI-generated content replacing the unique imagination and innovation of human creators.

However, as AI has become more ubiquitous across society, perspectives have shifted.

According to Unity’s 2025 Gaming Report , 79% of game developers now feel positively about using AI in gaming, while only 5% remain skeptical.

The survey highlighted a surprising shift in attitudes towards AI, especially as the technology threatens to limit the size of workforces.

However, while developers may be shifting their outlook, gamers remain highly skeptical of AI’s use in game development.

In February, Activision received backlash after acknowledging the use of generative AI tools to develop certain in-game assets for Call of Duty: Black Ops 6.

The acknowledgment came after months of player speculation, with one particularly telling asset featuring a zombie with six fingers on one hand.

Last year, Wired reported that Activision sold an “AI-generated cosmetic” for Call of Duty: Modern Warfare 3 without disclosing its origins—angering players who had spent $15 on the item.