Mass layoffs continue to hit the videogame industry and this time with Iron Galaxy studios who has announced another round of layoffs affecting up to 90 employees. Moreover, this is the second time the company is undergoing mass layoffs with dismissing 66 staffs in last year. The company has announced the news in their LinkedIn profile, stating: “Today, Iron Galaxy Studios regrets to announce that we are reducing our company size.”
“A number of teammates and friends are losing their jobs as we adjust to a new company structure. We are terribly sorry to lose them as we take steps to adapt to the climate of the video game industry. It’s time for us to evolve again.”
Iron Galaxy explained that the rounds of unfortunate layoffs are part of the decision to form a new structure in the company which is due to a significant decrease in growth that has took place in the videogame industry after the pandemic.
“Ever since 2020, when everything about making video games started to change, people have been waiting for business “to get back to normal.” These are the conversations we’ve had with colleagues and partners on our travels to the places where game creators gather. This year, we’re adopting a new posture to accept these current market conditions as permanent.”
The studio explained that these sad decisions were taken in order to adapt to the current market conditions: “Publishers have different criteria for investing in the development of games. This new normal has impacted all our partners. As Iron Galaxy adapts, we must make painful decisions about what we can be as a company. It’s impossible for us to sustain the team size that we’ve carried this past year, even after our downsizing from last year.”
Lastly, the company also lamented the dismissals which is very much understandable: “We hate losing people. One of our core values is providing a wonderful experience for the talented folks who work for us. The best we can do for them today is to help them start writing the next chapter of their career. They are all welcome to introductions and referrals from us. If you need good people, please be on the lookout for them.”
