Total workforce fell from 28,516 in May 2024 to 27,347 in September 2025

GamesIndustry.biz's resource offers insights, analysis, and news coverage of the video game industry. Readers can learn about gaming trends, business strategies, and industry developments. With articles, interviews, and opinion pieces, GamesIndustry.biz provides  insights and expertise for professionals working in the video game industry.

GamesIndustry.biz

The UK games development sector is experiencing its worst recorded downturn, with total employment falling 4.5% year-on-year from 28,516 to 27,347 workers between May 2024 and September 2025. Over 490 companies cut nearly 3,700 full-time roles, 206 studios closed, and new studio formation hit a 15-year low — dropping over 30% for the third consecutive year. Larger studios (15+ staff) bore the brunt of redundancies, while micro and small studios saw modest growth. Mobile and PC-focused studios suffered the steepest employment declines. TIGA attributes the crisis to weak global sales, poor early-stage financing, and post-pandemic restructuring, and is calling on the UK government to raise the Video Games Expenditure Credit to a 53% rate, which it estimates could generate £482 million in GVA and nearly 7,000 jobs.

TIGA: UK games dev sector faces "most severe downturn on record"