The bad news continues in the video game industry. During the last few months, we have seen many developers who they dispense with a good part of their staff, and it seems that this trend is not going to change in the coming weeks. Proof of this is Frontier Developments, a developer known for its deliveries of F1 Manager which just confirmed cuts and a new wave of layoffs in their offices.
This information has been communicated through a note published on the London Stock Exchange (via VGC), where it talks about the execution of a “organizational review“which will result in stopping the hiring of new personnel, making cuts and laying off an undetermined number of workers. These actions will be carried out until early 2024, according to company officials.
Frontier Developments certainly hasn’t had the best of years. Beyond the results of F1 Manager 2022, whose business performance did not meet expectations of the company, its share price has also been affected over the last few months. In this sense, the shares have experienced an 80% drop in value since the beginning of 2023, with January being the hardest month (recording a decrease of 54% in one week). All of this, which has been called by the company as “a period of disappointing financial performance“, has led to the dismissal of staff.
More layoffs in the video game industry
As we said at the beginning of the news, this is not the first time that a company announces layoffs so far in 2023. In fact, the year is being devastating for video game developers, as we know that companies of the caliber of Epic Games, CD Project either Blizzard They have been laying off their employees. In total, at least until now, there are more than 6,100 people who have lost their jobs during the last few months in the industry.