Worms game developer Team17 has announced a company restructuring, hinting at substantial job cuts. Read on to learn more about the situation, the implications for ongoing projects, and the broader pattern of layoffs in the gaming industry.
Team17 to Undergo Company Restructuring
Major Job Losses Expected to Meet New Company Goals
Team17, known for their work on the Worms and Overcooked series, has officially acknowledged that it is undergoing a company-wide restructuring, with a focus on reducing redundant roles and embracing outsourcing. The indie game company says the reason behind these changes is to streamline operations, and many positions are seemingly at risk of being let go to attain this new goal.
An emergency town hall meeting on October 2, 2023 conveyed the news to affected staff, with approximately 50 roles in Team17's QA department bearing the brunt of the layoffs. The restructuring targeted Junior Analyst roles in the QA department, while its impact on other departments remains uncertain.
This follows earlier significant job losses within Team17's internal development team, despite initial expectations that further layoffs were unlikely. The consultation period for the restructuring is projected to last until next month.
CEO Michael Pattison to Part Ways with Team17
Amidst Team17’s major restructuring plans, Team17 CEO Michael Pattison is also set to step down from his role. Pattison first joined Team17 in 2021 after his time working at PlayStation. Despite a tenure of less than two years, Team17 asserts that Pattison's departure is amicable. It nonetheless marks another significant change in the ongoing company reorganization.
Massive Layoffs an Ongoing Trend in the Video Game Industry
Major Industry Layoffs in 2023
The video game industry is witnessing a noticeable trend in 2023 with major layoffs affecting even the biggest names like CD Projekt RED, Sega, and Epic Games.
Smaller and newer companies like Ascendant Studios and now Team17 were not spared by the trend either, causing a massive amount of the industry’s workforce to be let go.
Studios Cannot Sustain Massive Workforces
The common denominator among the layoffs seems to be a need for a reduction in operational costs after major title market flops. While this isn't universally applicable, the trend indicates a widespread effort to downsize or streamline company structures for various reasons.
One contributing factor is linked to the tech industry's recession during the COVID-19 pandemic. While many sectors faced economic downturns, the video game industry thrived as people sought indoor entertainment, leading companies to expand their workforce during this period.
However, a new economic reality is at hand and many studios are unable to finance the upkeep of their now-bloated workforce. This is especially true when a major title flops with massive sunken costs. Only time will tell if the trend will continue and if it will have further consequences for the industry as a whole.
Source:
How Video Game Industry is Feeling the Pinch of Big Tech Layoffs - Bloomberg
