It feels like the impact of each new announcement of layoffs is landing before the implications of the last can be fully absorbed in the games industry at the moment - the latest, reportedly affecting Xbox, Zenimax and (primarily) Activision Blizzard, has arrived not even a week since Riot announced 500 lost roles. Along with further redundancies in the tech sector, it has been a difficult January.
Something this announcement has in common with Riot is that not a small number of the people affected will be living in very expensive cities, such as Los Angeles and Seattle, having possibly moved there specifically to take up those roles.
On the up side, these cities are expensive partly because there are a lot of employers there, and there may be opportunities to get into a new position relatively quickly. Other areas may cost less, but have only one or two studios or publishers of a meaningful size.
Remote work policies can serve as a hedge against the cost of living in these expensive cities, but many of the people hit by recent layoffs would have either been negotiating post-pandemic policies on returning to the office, or would have taken jobs post-pandemic which mandated physical presence.
It feels like there are some tough questions there. Immediately, there is the question of whether to stay in that expensive city and trade the cost of living against the opportunities, and the likelihood that the next role will also be in that city. And then, more foundationally, there's the question of what to do if an opportunity arises, but requires moving to a new city, with the associated costs.
Are we going to see businesses adapting to those anxieties, and if so, how? Are people who feel less secure in their (current or potential) jobs going to be less willing to make major life changes, and will that lead to further pushback on "return to office" policies?
Or, contrariwise, will the constrained job market at least in the short term speed up "return to office" where management wants to effect it, with candidates self-selecting on whether they want to make the move?
Right now, employers may see an opportunity to restructure their working arrangements before potentially beginning to hire again. However, there are long-term brand implications not just in how companies handle layoffs, but also how they handle the period after layoffs, both for their retained staff and for potential future hires.
Rabbi • Subject Matter Expert & Researcher • Internationally Syndicated Columnist • Biblical Philologist • Writer/Author • Editor/Translator • Lecturer
5moOuch! Blizzard is a legend in the industry. I remember playing Warcraft II as a kid... good times.