Gaming Company Layoffs are all Elon Musk’s Fault!
Elon Musk is to blame for the layoffs in gaming companies! A controversial opinion, and mostly a joke, but also a bit true! Remember, in late 2022, Musk was compelled to buy Twitter and then began trying to make the company profitable. As far as I know, he hasn’t achieved the profitable part yet, but this tumultuous and very public endeavor had two significant outcomes:
1. Musk reduced the staff at Twitter by around 80%. From 7500 employees in 2022, estimates suggest only 1000–1500 remain at the company.
2. Twitter/X is still up and running.
Heads and owners of gaming and IT companies attentively watched this process, some with envy, others with condescension, and drew their conclusions. And as a result, many found that the “irreplaceable talents” in their companies are indeed replaceable. Especially given that a lot of managers perceived a drop in worker efficiency when many employees never returned to the office from remote work.
This unexpected realization also dawned on the shareholders of these companies, who now had fewer funds due to international risks and an economic downturn. In the view of many shareholders, if profits aren’t growing through increased company revenue, then costs can be cut. Boosting revenue is challenging, but cutting expenses is straightforward.
When will this end? When the market starts to feel better, some trendy company will hire talented individuals and, as a result, showcase immense profits.
Don’t forget, many parts of the gaming market are still growing. In a year or two, HR will be back hunting for talent.