Renowned publisher 505 Games, known for popular titles like Death Stranding and Control, has become the latest victim of the ongoing wave of layoffs in the tech industry. The parent company, Digital Bros Group, is undergoing a restructuring plan that will result in a significant reduction in workforce.
In a press release on November 14, Digital Bros Group announced an organizational review, with an expected workforce reduction of approximately 30 percent. The decision comes as the company acknowledges the selective nature of the post-COVID market, with players gravitating towards established IPs and franchises rather than new and unique titles.
To adapt to this changing landscape, 505 Games will now focus on releasing games from existing and recognized IPs while reducing the output of new big games. As a result, all projects currently in development will undergo a thorough review. This restructuring program is expected to lead to a 30 percent reduction in workers, primarily concentrated within the studios.
The gaming industry has been hit hard by layoffs in recent times. Just two days ago, nearly 200 people were fired from Amazon’s gaming division. Bungie, a prominent game developer, also cut its staff by 100. In 2023 alone, over 6,000 jobs have been lost in the gaming industry. Companies like Bungie have been struggling to meet their targets, further contributing to the challenging market conditions.
It is our hope that this trend of layoffs in the tech industry will eventually subside, allowing those who have lost their jobs to find new opportunities within the industry.
Source: DOTESPORTS
