Layoff Support Services for Game Studios: How to Help Employees Transition

The games industry is unfortunately still suffering from layoffs as we publish this article in 2025. According to data 8Bit team gathered in Q3 and Q4 2024 for the Gamedev Salary Pulse report, the most common reasons for job loss in the industry were workforce reduction (31.1%), mass layoffs (29.3%), and lack of funding (12.8%). Other causes included company closures (8.5%), project cancellations (7.9%), and roles being taken over by AI technology (1.2%).

As a business leader or HR professional in a game development studio, how you handle these situations can make a significant difference, not just for those being laid off but also for your studio’s reputation and the morale of your remaining team members.

Providing meaningful support to employees transitioning out of your studio isn’t just an ethical responsibility, it also strengthens your employer brand and fosters goodwill in the industry. Investing in layoff support services for game studios ensures that affected employees receive the guidance they need while maintaining a positive industry reputation. Below, we explore actionable ways, both free and paid, to help game developers navigate job loss and re-enter the job market successfully.

1. Be Transparent and Communicative

The way layoffs are communicated can deeply impact employees’ and industry’s trust and confidence in your studio. Ensure that you provide clear, honest, and timely communication about why the decision was made and what support will be available. Offering employees a chance to ask questions and express their concerns helps them process the situation more effectively.

If possible, take into consideration their notice periods and make the transition as long as possible for them. For example, if they have a full calendar month notice period starting the next month from when the layoff has been communicated, letting them go on the last week of the month makes their notice period effectively shorter. On the other hand, letting them go at the beginning of the month allows them to utilize the full notice period, giving them more time to search for a new role while still being employed.

2. Provide Competitive Severance Packages

While not all studios have the financial flexibility to offer large severance payouts, providing at least some form of financial assistance can ease the transition. If possible, extend benefits like healthcare coverage for a limited period and consider additional bonuses based on tenure.

Another way to support affected employees is by waiving confidentiality clauses to some extent. Allow employees to showcase an agreed portion of their work in portfolios or elaborate on their accomplishments during job interviews. This can significantly improve their chances of securing new opportunities by demonstrating their expertise and contributions.

3. Offer Career Support Services

Helping employees land on their feet in their next role should be a top priority. This is where structured career support services come into play. At 8Bit, we offer scalable solutions designed to help laid-off employees secure new opportunities efficiently. Our layoff support services for game studios ensure candidates present themselves optimally to prospective employers.

Key benefits of our support package:

• CV and Portfolio Review – expert feedback tailored to the games industry to help candidates stand out.
• LinkedIn Profile Optimization – guidance on improving online presence and visibility to recruiters.
• Interview Preparation – training to boost confidence and effectiveness in job interviews.

HR teams and decision-makers can collaborate with us to offer these services at scale, making sure that affected employees receive the professional guidance they need. Our layoff support services for game studios are tailored to help teams transition smoothly while maximizing their career opportunities. You can explore the details at CV Review consultations page or reach out via email to discuss how we can help your team navigate this transition smoothly.

4. Connect Employees with Industry Opportunities

Leverage your studio’s network to help former employees connect with new opportunities. Reach out to recruiters, other studios, and industry partners to share job openings and recommend affected employees. Organizing networking events or providing access to exclusive job boards can also make a big difference.

An idea that tends to be popular among studios is composing a Google Sheet or AirTable with details of affected employees, including their name, role, location and willingness to relocate, LinkedIn profile link, and contact email. It is important to confirm that affected employees are comfortable with this before sharing their details. You can create a form in Google Forms or Typeform and send it to affected employees. Make sure to explain clearly how their information will be used. For example, you can inform them that you will create a dedicated LinkedIn post that will be shared by their company.

5. Encourage Community and Peer Support

Layoffs can be isolating, so fostering a sense of community among departing employees can be incredibly valuable. Encourage the formation of alumni groups where ex-team members can stay connected, share job leads, and support one another. A Slack or Discord group dedicated to this purpose can be a great initiative.

6. Offer Mental Health and Well-being Support

Job loss can take an emotional toll on employees. Consider offering access to counseling services or other mental health resources to help them navigate this difficult period. Even something as simple as encouraging an open dialogue about challenges and stress can help employees feel supported.

Layoff Support Services: Final Thoughts

How a studio handles layoffs says a lot about its values. Job loss is never easy. Yet providing the right kind of support can make a world of difference to those affected. We would all rather see layoffs stop entirely, but until then, ensuring that employees have the resources and guidance to transition smoothly is the best way to support them and maintain a strong, positive industry.