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Sega, EA and Unity have started large layoffs one after another, and the cost reduction of overseas game companies is unstoppable.

2025-01-15 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

CTOnews.com, May 26, according to South Korean media This is Game, although the unemployment rate announced by the US government in May has dropped 0.1% month-on-month, and GDP is rising quarter by quarter, the wave of layoffs among North American game companies still seems unstoppable.

On May 23rd Sega announced that it would lay off 121 employees at its Canadian subsidiary Relic Entertainment, saying it was because "external factors are more challenging than ever". However, neither Sega nor Relic specified exactly what "external factors" are.

Earlier this year, EA laid off 1000 employees on the grounds of cutting costs, and Unity laid off 600 people. In addition, Meta, Ubisoft, fist and other companies have also carried out layoffs.

CTOnews.com noted that Unity CEO had previously told the Wall Street Journal that the company had too many layers of structure in the past, so the decision to cut jobs was made in order to streamline government and improve the efficiency of the company's operations.

Some analysts believe that macroeconomic factors (such as the Federal Reserve raising interest rates by 5% within a year) have also become an important reason for the wave of layoffs in the game industry, because rising interest rates will lead to higher financing costs for game companies. thus affecting the overall business of the company.

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