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Tag: verge

  • 12 Days Into 2024 And 2700+ Video Game Layoffs Have Been Announced

    12 Days Into 2024 And 2700+ Video Game Layoffs Have Been Announced

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    Within the last few years, video game industry layoffs have unfortunately become more commonplace. In 2023, we saw near-weekly layoffs across the entire industry. When the dust had settled, at least 6,000 jobs across publishers, developers, and other video game-related companies had happened. Sadly, it appears 2024 will outpace that, if the first few weeks of the year are any indication.

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    Most folks didn’t expect 2024 to be much better, but I’m not sure anyone was ready for it to be possibly worse—yet this year has kicked off with a string of big and small layoffs signaling that the corporate bloodletting rituals aren’t ending anytime soon. So Kotaku is going to try and track all of 2024’s layoffs as they happen. Hopefully, we don’t have to update this post that much.

    Archiact – Unknown

    On January 4, 2024, the first round of video game layoffs (that we know of) happened at VR games developer Archiact. The company, known for its Doom 3 VR port, announced on social media that it had laid off an unspecified number of staff.

    “We are working with these individuals to offset this difficult transition as much as possible, including through reverse recruiting,” said the studio in its announcement post.

    Bossa Studios – 19 people

    This technically happened in late 2023, but was reported and confirmed on January 5, 2024. According to Gameindustry.biz, 19 people were cut from the studio. The layoffs were mostly QA and production roles as well as some non-UK employees.

    Unity Software – 1,800 people

    On January 8, 2024, Reuters reported the first truly massive round of layoffs for the year as Unity confirmed that it planned to cut nearly 25% of its staff as part of a continued “reset” at the company. This is reportedly the largest round of layoffs in the software company’s history and it will be completed by the end of March.

    Twitch – 500 people

    On January 9, 2024, Bloomberg reported that Twitch was preparing to lay off 500 employees by the end of January. This is about 35% of its total staff. The Amazon-owned video game streaming website previously laid off hundreds of employees last year in March and later in October.

    Playtika – 300-400 people

    As reported by CTech on January 11, 2024, mobile game publisher and developer Playtika plans to lay off up to 400 employees, or about 10% of the company’s total workforce. Playtika previously laid off 900 employees in 2022. In 2023, the company agreed to pay up to $300 million to acquire Innplay Labs, another mobile developer.

    Discord – 170 people

    The Verge reported on January 11, 2024 that popular video game chat software developer Discord was planning to lay off around 17% of the company’s total staff. The layoffs were announced in an all-hands meeting and an internal memo obtained by The Verge. CEO Jason Citron explained in the memo that the company had grown “quickly” since 2020 and took on too many projects.

    “Today, we are increasingly clear on the need to sharpen our focus and improve the way we work together to bring more agility to our organization,” Citron told employees in the memo. “This is what largely drove the decision to reduce the size of our workforce.”

    Lost Boys Interactive – Unknown

    On January 12, Aftermath reported that an unknown amount of employees at Gearbox-owned developer Lost Boys Interactive had been laid off.

    “It seems a sizable portion of Lost Boys Interactive was laid off today, including myself,” wrote Jared Pace, a producer at the studio, on Linkedin. Pace reportedly told Aftermath that layoffs “affected all disciplines at all levels.”

    Funselektor – 3 people

    The Canadian indie studio behind Art of Rally announced on January 12 that three developers had been laid off.

    “Unfortunately, we’ve had to make some positions redundant at Funselektor,” tweeted the studio’s founder Dune Casu. “We’d like to help them in their employment hunt in the video game sector, so we recommend these awesome Australians: @AdrianGenerator, @PezzleSp, @h4ypal.”

    As of January 11, 2024, at least 2,792 people have been (or will be) laid off this year.

    The video game industry is bigger and makes more money than movies and music combined, bringing in $180 billion in 2021 alone. It’s also an industry that becomes riskier and more expensive each year as AAA games take longer and cost more to make, leading to a situation where even a single flop can sink a studio or publisher. And the whole industry is also in desperate need of unions to help protect its millions of workers when things don’t work out as planned.

    Until then, corporate greed, industry consolidation, and poor leadership will likely continue to cost thousands of people their jobs as we’ve seen at Twitch and Unity.

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    Zack Zwiezen

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  • Kevin McCarthy Finally Defies the Right

    Kevin McCarthy Finally Defies the Right

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    The speaker made a last-minute reversal to avert a government shutdown. It could cost him his job.

    Anna Moneymaker / Getty

    Updated at 9:02 p.m. ET on September 30, 2023

    For weeks, Speaker Kevin McCarthy seemed to face an impossible choice as he haggled over spending bills with his party’s most hard-line members: He could keep the government open, or he could keep his job. At every turn, McCarthy’s behavior suggested that he favored the latter option. He continued accepting the demands of far-right Republicans to deepen spending cuts and dig in against the Democrats, making a shutdown at tonight’s midnight deadline all but a certainty.

    Read: Why Republicans can’t keep the government open

    With just hours to go, however, the speaker abruptly changed course, defying his conservative tormentors and partnering with Democrats to avert a shutdown. The House this afternoon overwhelmingly approved a temporary extension of federal funding. The Senate passed the bill in the evening, putting off a shutdown for at least 45 days and buying both parties more time to negotiate spending for the next fiscal year.

    The question now is whether McCarthy’s pivot will end his nine-month tenure as speaker. By folding—for now—on the shutdown fight, he is effectively daring Representative Matt Gaetz of Florida and other hard-line Republicans to make good on their threats to depose him. “If somebody wants to remove [me] because I want to be the adult in the room, go ahead and try,” McCarthy told reporters before the vote. “But I think this country is too important.”

    The stopgap bill includes disaster-relief money sought by both parties, but McCarthy refused to add $6 billion in Ukraine aid that the Biden administration and a bipartisan majority of senators wanted. The Senate had been on the verge of passing its own extension that included the Ukraine money, but after the House vote it was expected to accept McCarthy’s proposal instead. Whether House Republicans agree to include Ukraine assistance in the next major spending bill is unclear, but Democrats and Senate Minority Leader Mitch McConnell are likely to make an aggressive push for it.

    McCarthy’s surprising about-face set off a wild few hours in the Capitol. Democrats were caught off guard and stalled for time to read the new bill, unsure if Republicans were trying to sneak conservative policy priorities into the legislation without anyone noticing. (In the end, only a single Democrat voted against it.) Representative Jamaal Bowman of New York, a second-term Democrat, caused the evacuation of an entire House office building when he pulled a fire alarm just before the vote, in what Republicans said was a deliberate—and possibly criminal—effort to delay the proceedings. (Bowman’s chief of staff said that the representative “did not realize he would trigger a building alarm as he was rushing to make an urgent vote. The Congressman regrets any confusion.”)

    Annie Lowrey: How to end government shutdowns, forever

    On the right, the criticism of McCarthy was predictable and immediate. “Should he remain Speaker of the House?” one of his Republican opponents, Representative Andy Biggs of Arizona, tweeted after the vote, seemingly rhetorically. Yet to more moderate Republicans, the speaker’s decision was a long time coming. McCarthy’s months-long kowtowing to the right had frustrated more pragmatic and politically vulnerable House Republicans, a few of whom threatened to join Democratic efforts to avert, or end, a shutdown. But many Republicans are even more furious at Gaetz and his allies. “Why live in fear of these guys? If they want to have the fight, have the fight,” former Representative Charlie Dent of Pennsylvania, a moderate who served in the House with McCarthy for 12 years, told me. “I don’t understand why you would appease people who are doing nothing but trying to hurt and humiliate you.”

    This morning, the speaker finally came to the same conclusion. His move to relent on a shutdown only kicks the stalemate over federal spending to another day. Now it’s up to House Republicans to decide if McCarthy gets to stick around to resolve it.

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    Russell Berman

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