This is not the first time, and it will not be the last time this year, that we have heard of layoffs in the video game industry. In the time of COVID, The sector has experienced a bubble that should sooner or later burst, and it is already causing many victims. The demand for video game consumption has decreased, but not the volume of active projects, so we have to reduce, and unfortunately this is a sector that can only reduce human capital.
Today we know that one of the studios affected by this issue is Certain Affinity, which has historically worked on Halo for decades with Bungie and 343 Industries. In fact, some rumors point to the cancellation of the Tatanka project, the Battle Royale Halo in which the studio was involved.
Certain Affinity lays off 10% of its workforce
The study included 250 active workers, which means that 25 employees were laid off, the vast majority of them would be in the sales department, so the developers seem to still have work to do at the moment. And 10% may seem like a small amount, but we’re talking about a big loss for a modest study.
The studio’s CEO, Max Hoberman, wrote this letter to report the difficult situation and hopes that things will improve in the future. The reasons are the same as those we are seeing these months, the current complex situation in the video game industry.
Over the past 12 months, the video game industry has faced unprecedented challenges. We are not an exception. Today, we made the extremely difficult decision to notify 25 of our U.S.-based employees of the elimination of their jobs. This has the greatest impact on the teams that manage our business operations.
Several factors explain this decision to lay off for the first time in our 17-year history. Most significant is the industry-wide slowdown in funding for new development and co-development projects, as well as the reluctance of outside investors to fund games or gaming companies. This has made it extremely difficult to sign new work or obtain other forms of funding.
We are currently focused on our team and the well-being of those most affected, whom we support with severance and ongoing benefits. We also make awards acquired under our equity plan transferable so that they can benefit from the company’s success in the future.
We’ve built an incredible culture where we all come together to support each other in times of need. We ask for your understanding and patience as we navigate this unprecedented event. THANKS.
From here, we wish the best to everyone who lost their jobs and hope things stabilize in the sector soon.
