Despite what the headlines suggest, no – layoffs are not an inevitability.
Jesse Schell – a veteran designer and author who hasn't laid off a single employee since establishing Schell Games in 2002 – believes the games industry's cyclical hiring and firing practices not only breed distrust and fear, but also weakens team dynamics over time.
As part of our new GI Sprint series of videos, podcasts, and articles about making games cheaper, faster, and better, Schell shares his strategies for building and maintaining a sustainable business in desperately uncertain times.
You can watch the full discussion below, download it here, or find it on the podcasting platform of your choice.
"The reason I think a lot of folks end up having layoffs is they put jobs at risk as part of the nature of doing business," Schell says when asked how he's managed to avoid layoffs at his studio when almost 11,000 devs from 120+ studios have lost their jobs in 2024 alone.
"[Studio executives] go into it saying, 'Look, we're gonna get this money, we're gonna make this game. If the game is a success, then great – if the game's not, then we're gonna have to lay people off'. That's just how it is," Schell says.
"I've always found it to be really toxic. I've been at companies where I've seen it happen. And you see how everybody lives in fear of what will happen next."
Not only is this bad for morale, but it's bad business, too. That's why Schell thinks studios should prioritise people over profits.
Firmly believing that the longer people work with each other, the better they get, Schell's keen to stress that retention isn't just about holding onto skills or experience – it's about strengthening relationships across your workforce, too, no matter its size.
"When somebody from the team leaves, not only have you lost that talent, but all of the experience that people have built up working with that person," Schell explains. "But when people stay together, they get stronger over time. For us, a big part of
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