Companies around the world believe that we’re heading into troubled economic waters, and that means it's a bad time to be an employee at some of the larger studios. Case in point, League of Legends developer Riot is laying off staff.According to "multiple people" speaking to esteemed esports journalist Jacob Wolf (via VGC), "Riot Games is making layoffs." So far, the "size and scope" of the layoffs aren’t entirely clear, but Wolf’s sources note they’ll have adverse effects on "recruiting & human resources, support, and esports." "Riot’s historically not made many reductions in force in the past," Wolf added, "but it’s in line with a broader trend in tech, gaming, and entertainment as economic hardship begins to affect many corporations."
One of the larger corporations hit with mass layoffs is Microsoft, which announced 10,000 jobs would be cut by the end of March. The Xbox parent company said that the job cuts are necessary due to "macroeconomic conditions and changing customer priorities," with CEO Satya Nadella noting revenue has dropped as customers "optimize their digital spending to do more with less." The company said in a financial filing it also plans to consolidate its real estate and make changes to its hardware portfolio.
As noted by Kotaku, Xbox Game Studios have been hit by Microsoft's mass layoffs. Bethesda, The Coalition, and 343 Industries have reportedly been forced to let people go, possibly affecting the development of Starfield, Halo Infinite, and The Coalition's new IP.
Another company struck by layoffs is Unity, makers of one of the most popular video game engines. Nearly 300 workers have been let go after the company "reassessed our objectives," according to CEO John Riccitiello, canceling several internal technology projects including one that would allow viewers to watch a sportscast from any angle they wished.