The video game industry continues to face significant workforce reductions, with more than 3,700 verified job losses recorded worldwide so far in 2026, according to a report released on Friday.

Data compiled by TradingPlatforms showed that confirmed layoffs across gaming companies have reached around 3,700 this year. The report added that the actual figure is likely higher than 4,000 once unreported cuts, undisclosed workforce reductions and studio shutdowns are taken into account.

The report also noted that layoffs across the broader technology sector had climbed to at least 143,378 by June.

The United States accounted for the largest share of gaming industry job cuts, with 2,153 confirmed layoffs representing about 58.2% of the global total.

Among the biggest workforce reductions this year was at Epic Games, the company behind Fortnite and Unreal Engine. The developer eliminated roughly 1,000 positions, making it one of the largest rounds of layoffs seen in the gaming sector.

Bungie, known for the Halo and Destiny franchises, is also set to reduce its workforce, with plans to cut around 400 jobs during the summer. Several other game developers and publishers have announced smaller layoffs during the year.

France emerged as another major centre of workforce reductions. Ubisoft disclosed approximately 680 job cuts across multiple studios as part of a broader restructuring exercise.

Canada recorded at least 257 gaming-related layoffs. Nearly half of those came from Eidos-Montréal, where 124 positions were eliminated following the cancellation of a major AAA project.

The report said the impact of the industry’s downturn has extended beyond layoffs, with some studios shutting down operations altogether during 2026.

Outside gaming, cloud and software-as-a-service companies have cut nearly 31,900 jobs this year. E-commerce firms have shed close to 21,000 positions, while IT services companies have reduced headcount by more than 16,700. Social media, enterprise software and fintech companies have each reported workforce reductions exceeding 10,000 employees.

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First Published on June 20, 2026, 11:42:02 IST