Yesterday, Gameloft confirmed significant layoffs at its Toronto studio, affecting approximately 49 employees. The decision, as stated by a company spokesperson to GamesIndustry.biz, was deemed necessary due to ongoing challenges in the games market. The studio cited the need to adjust its production capacities in response to fluctuating market conditions, leading to a substantial reduction in the workforce at the Toronto office.
The layoffs primarily impacted the team working on the 2016 title Disney Magic Kingdoms, with plans to transfer the game’s development to Gameloft’s Kharkiv studio in Ukraine. Reports indicate that only HR, IT, and management roles were spared from the cuts. This move marks a strategic shift for Gameloft Toronto, which has also faced previous rounds of layoffs earlier this year.
Community manager Tasha Huggins, in a LinkedIn post, confirmed her departure from Gameloft Toronto, highlighting the talent pool now available in the job market. She expressed support for her former colleagues, urging potential employers to consider hiring from the recently displaced team.
This latest round of layoffs follows earlier workforce reductions in February and April, which also affected the studio. Gameloft emphasized that the decision was made after careful consideration of the studio’s operational needs and the evolving demands of the industry. The company pledged to support affected employees on an individual basis in navigating their career transitions.
GamesIndustry.biz reached out to Gameloft for further comment on the situation, indicating ongoing interest and concern within the gaming community about the studio’s future direction and the welfare of its workforce.