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With tens of thousands of jobs lost across industry in the past few years, to say this is a demoralising time to be working in video games would be something of an understatement.
It’s impossible to truly calculate how many lives have been affected by the studio closures and waves of layoffs we’ve seen, which have an impact not only on those who have lost their livelihood, but also on those who remain employed.
Much of the burden for handling both redundancies and staff morale during such situations falls to HR departments – something we will be discussing at the GamesIndustry.biz HR Summit on Thursday, October 1. Ahead of this event, we spoke to experts in this field to get a sense of how the industry’s downsizing has affected them.
Emma Smith, who spent 15 years handling HR at Creative Assembly before forming her own consultancy Hestia Talent Partners, suggests that not enough attention is being paid to those whose jobs have (for now) remained safe.
“We have quite rightly talked a lot about the people who have lost their jobs, but maybe not enough about the people who are still there,” she says. “There are people in the industry who have now been through two, three, or even more rounds of layoffs. They’ve watched so many people lose their jobs, seen projects cancelled and studios close, and in some cases spent many months wondering if they were going to be next. That has an impact. You can’t just announce that things are more stable now and expect everyone to feel safe again.
“That’s where studios have some work to do – not in trying to manufacture excitement or buzz, or tell people everything is going to be fine, but in actually rebuilding trust, which takes time. They need to be honest, do what they say they’re going to do, and treat people properly, particularly when things are difficult.”
A sense of safety
Michael Elliott Chan, head of people and operations at We Happy Few developer Compulsion Games, agrees, adding that he’s noticed a shift in employee conversations towards job security.
“At one point, we were in more of an employee-driven market, but things have shifted back toward employers, with fewer roles available and a greater need for stability in uncertain times,” he says.
“I’m also seeing employees take more precautions, whether that’s building a nest egg or strengthening their emergency funds. In personal conversations, I’ve heard more people thinking proactively about how they would navigate an unexpected downturn.”
Given that barely a day seems to go by without more layoffs and/or closures making headlines, how do you reassure your staff during such tense times? Chan says that while it seems like too big a problem to fathom, the emphasis for HR and leadership should be on “controlling the controllable.”
“Communicating intentions regularly is important because it helps people focus on what they can control: doing great work and supporting each other,” he says.
“Having an open-door policy and proactively checking in with people, especially those who may be less vocal, can also give you a much better sense of how the team is really feeling. When people start to lose motivation, they can sometimes be the first to go quiet. Making sure you’re listening to the collective voice of the team is incredibly important.”
“When people start to trust what they are hearing and experiencing again, motivation has something much more solid to build on”
Smith emphasises that this responsibility does not lie solely with HR: “Rebuilding trust after significant change is the responsibility of leaders across the studio, with HR there to support them.
“And I would probably focus on trust before motivation. People aren’t going to be reassured simply because someone tells them everything is going to be fine, particularly if they have been through repeated change. Reassurance comes from honesty, consistency, and following through on what you say you are going to do. If circumstances change, be honest about that, too. When people start to trust what they are hearing and experiencing again, motivation has something much more solid to build on.”
Staff development
Another factor that can help is ensuring the remaining staff are still about to develop their skills and progress in their careers. What better way to assure them about the future than by planning for it?
Smith adds that the industry needs to broaden its idea of what development and progression actually looks like for people.
“It isn’t always a training course, a promotion, or another rung on a career ladder,” she says. “It can be deepening the skills you already have, gaining experience adjacent to your discipline, working with another team, mentoring somebody, or taking ownership of something new. Particularly when organisations are flatter and there may be fewer opportunities for traditional promotion, there are still plenty of ways to help people grow.
“The important part for me is being honest about it. If there genuinely isn’t an opportunity for promotion at that point, don’t dress something else up as one. Have an open conversation about what development is available and what will genuinely help that person’s career.”
Again, Chan adds the need for communication. Folks are reading about changes across the games industry every day; if HR and leadership doesn’t get ahead of those conversations and address topics that may concern staff, it can hinder the trust you’re aiming to build.
“Show that you’re not afraid to have difficult conversations,” he says. “The alternative is that people can end up ruminating, suffering in silence, or unintentionally spreading fear by talking with their peers.
At times, a straightforward, open conversation from leadership that directly addresses the concerns people are hearing can bring a sense of relief.
According to Chan, engaging in one-on-one discussions instead of relying solely on company-wide messages is crucial and shows that you are leading with empathy.
“I understand that this can be time-consuming, especially after delivering tough news, but it is important,” he explains. “With the vast amount of content people consume nowadays, they may start to question if there is even a human connection behind it. When there is a fear of being treated merely as a cog in a machine, creating opportunities for personal, face-to-face conversations can truly make a difference.”
The influence on HR
Another group that needs consideration in all of this is the HR teams themselves. Smith notes that the industry’s turbulence has significantly impacted the workload and nature of tasks HR departments have to handle, along with the emotional toll it takes.
“HR professionals are human too, and in some instances, they have been supporting individuals through redundancy processes while grappling with the possibility of their own roles being at risk, all the while striving to approach the process with integrity and compassion,” she points out.
“The nature of the work has also shifted. There has been less room for long-term, forward-thinking initiatives related to culture and development, and a lot more reactive work tied to change. And the work doesn’t end once the restructuring is over. There is then the task of rebuilding trust and culture among those who remain.”
Ironically, HR personnel can sometimes overlook the very support systems they advocate for others to use. Smith stresses, “Employee assistance programs, wellness benefits, professional networks, and trusted colleagues are available for HR professionals as well.
“There can be a tendency in HR to bear the emotional burden of everyone involved, and that is not sustainable”
“It is also important to maintain a balanced perspective on your role. You can ensure that a challenging process is handled fairly, compassionately, and with integrity, but you cannot eliminate the fact that it is challenging. In HR, there may be a tendency to carry the emotional weight of all parties involved, and that is not sustainable.”
With ongoing layoffs showing no signs of slowing down, HR departments will continue to face significant challenges, with Chan once again highlighting the importance of direct communication. He emphasizes that the human aspect of human resources is essential.
“In a rapidly changing environment where people are inundated with AI-generated messages, news of layoffs, and a great deal of uncertainty, anchoring the business in a people-centric mindset is crucial,” he insists. “This means actively listening, consistently addressing concerns, and creating genuine opportunities for connection.
“This could involve regular listening sessions, frequent team surveys, intentional face-to-face meetings, and ensuring that we continue to celebrate achievements and milestones so that everything does not constantly feel negative.”
“Individuals who work in the gaming industry are passionate about their craft, and I believe it is important to show that same level of passion towards the individuals who are contributing to it.”
Lastly, Smith points out that crises like these can reveal a company’s culture far more than when everything is going smoothly.
“It is easy to talk about values when you are growing, hiring, and everything seems exciting with a solid release plan,” she concludes. “How a company behaves in difficult and uncomfortable times truly defines its culture.
“So instead of fixating on when things will return to how they were in gaming, perhaps we should let go of that notion because, frankly, it is in the past. Ideally, we should focus on the lessons learned over the past six years and how we envision our industry evolving.”
The GamesIndustry.biz HR Summit is coming back to London on October 1, centered on People & Leadership, with dedicated sessions on the future of people leadership and personal resilience for HR professionals. Tickets are now available here.
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