Video Game Industry Job Cuts Drive Surge in Union Memberships

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ICARO Media Group
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21/01/2024 23h42

Mass redundancies in the video game industry have prompted a significant increase in workers joining unions, according to organizers. The Game Workers branch of the IWGB union reported a nearly 50% surge in membership between December 2022 and December 2023, as job cuts intensified in the sector. Major game studios, including those responsible for popular titles like Fifa, Skyrim, and The Witcher, were affected.

Membership in the IWGB Game Workers branch saw a notable 12% increase in October 2023, following Epic's announcement of hundreds of job cuts at Fortnite due to financial challenges. A recent poll revealed that 35% of developers, comprising over 3,000 industry workers, indicated that they or their colleagues had been impacted by the layoffs.

The UK, boasting Europe's largest video game workforce, contributes £5bn to the country's economy annually. However, studios and publishers worldwide, driven by lackluster growth following a pandemic-induced gaming boom, are now resorting to cutbacks aggravated by the economic downturn and inflation.

Last year's announced layoffs at gaming studios globally indicated a minimum of 10,500 job losses. Although the precise number remains unknown as some companies did not disclose the extent of the redundancies, it is likely much higher. Companies such as Electronic Arts (EA), Bethesda, Activision Blizzard, and CD Projekt RED were among the major industry players affected by workforce reductions.

Ukie, the primary video games industry body in the UK, estimates that approximately 900 out of an estimated 11,100 job losses were UK-based roles, representing over 3% of the sector's total employment. The IWGB Game Workers branch chairman, Austin Kelmore, described the recent wave of redundancies as a deluge, sparking increased interest in union membership. The branch experienced its highest growth in new members last year compared to any other month in its five-year history.

The IWGB union was established five years ago in response to mounting concerns among video game workers regarding precarious working conditions, entrenched sexism at certain studios, and excessive overtime, known as "crunch." Unfortunately, the pace of job losses shows no signs of abating as at least 17 studios have already announced plans for further redundancies, impacting thousands of employees.

Unity, a leading video game software firm responsible for the engines behind popular games like Among Us and Cuphead, recently announced a workforce reduction of 25%, resulting in approximately 1,800 job cuts.

Acknowledging the hardships faced by the industry, Daniel Wood, co-CEO of Ukie, emphasized the need for the UK government to support games businesses in creating favorable conditions for growth. The current wave of redundancies is viewed as a rebalancing following years of substantial growth during the pandemic.

As the video game industry grapples with ongoing job losses, unions are emerging as a means for workers to safeguard their rights and advocate for better conditions within the sector.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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