What happens when you get laid off in the games industry?

I recently went through my first layoff as a concept artist in the industry. Since this was my first layoff I would love to share my experience and some things I’ve learnt to do to spot potential layoffs and what to do when you spot the early signs. Also what to do once you get laid off!

Part 1: Sensing a layoff

Here is a mix of potential possibilities I found online and things I’ve experienced during my first layoff.

  1. Lack of communication/ silence from upper management

  2. Stuck in the preproduction phase / many rounds of prototyping for one game

  3. Cancellation of big events, no more in-office benefits like snacks are being restocked.

  4. Lack of tasks and artists are idle with nothing to work on

  5. One or more games in the studios do not perform well after the release (especially prevalent in an indie studio)

  6. Merger and Acquisition make your studio redundant e.g. if your studio doesn’t have the right type of project the parent company is looking for more likely your studio will be shut down

  7. Key project head figures resign and leave the company with new jobs

  8. Work gets outsourced to external studios

  9. More crunch/ Overtime from meeting a certain deadline

  10. No funding secured from external sources e.g. publisher

  11. Hiring freeze across all departments.

  12. Other people are leaving the studio/ distrust towards the project, sensing what other people are feeling. These are the main people you have contact with and having distrust in the project is one of the biggest demotivators

  • Credit to Ahmad Merheb for his LinkedIn Post on sensing a layoff

Part 2: Take Action

When you identify the signs of a layoff, be proactive if you want to be employed again faster.

  1. Get permissions from managers for NDA work.

    • NDA is annoying especially when you have to go through the system of asking higher management or lawyers to check what you are legally allowed to show in your portfolio, the faster you get to this, the less you’ll have to worry about when you leave the company and not have access to any communication channels to make this process easier.

    • Have written proof of permissions to share work either in a message and save to a folder that you won’t forget (cover yourself legally if they change their mind afterwards)

    • Have written proof of what you are allowed to say to other employers

  2. Start thinking about what your portfolio goals are and start updating your portfolio

    • Take some time to figure out what sort of job you want next and strategize your next move. If your portfolio is mainly stylised, which other companies can you target to work for? What about this work environment did you not like?

  3. Spruce up your resume and start looking for work (ask your network, maybe need to keep it low key)

    • Update your resume with the most up to date information of your work, reach out to your network, see where you can find hidden job postings. You may have to keep it low key for the time being if your bosses don’t know you’re looking for a job elsewhere.

  4. Have an honest conversation with your boss (if appropriate)

    • If you’re open to voice your concerns and are ready to discuss with your boss about leaving the company, then I would talk to them about potentially getting a recommendation to help boost your online portfolio. I would also just take the time to pulse out how much time you think you have until the layoffs happens.

Part 3: The layoff

What happens during a layoff? It depends on the company, but from my experience this is what happened.

You will be asked to join a company meeting or get emailed the news or both

  1. The CEO or HR figureheads will be there to explain you’re getting laid off

  2. They will outline:

    • What you will be receiving from severance (how many months, official notice etc.), EI, Employee Shares bought within the company

    • What benefits you still have access to

    • how to return company property (in my case buy-back options for equipment)

    • Laid off benefits (therapy, career coaching etc.)

  3. Depending on the province Severance laws can differ

    • If you are a long-time worker of the company, you maybe eligible to get more than what is provided in a bulk layoff but check with a lawyer for those circumstances

  4. Main things to ask

    • asking how long you have access to documents. (be very clear with timezones)

      • In some circumstances, I’ve heard of companies cutting off access on the day

    • get permission for what you can say about the layoff on social media.

    • Check for bonuses, shares or incentives from the company

  5. Tying up loose ends

    • get references from managers, coworkers

    • Keep coworker contacts, and say goodbye

    • make a list of everything you can keep and everything you’ll need to wipe

If the company is shutting down:

  • Focus on the work you can potentially show.

  • may not expect severance

  • Expect it to be more chaotic, they may have laid off the HR person :(

After the meeting

  1. Read all legal documents provided from the company

  2. Process information and write down any additional questions you may have

  3. Keep pay stubs Netheris

Canadian process:

Register for EI, or you can wait until you get a code from the company right after the layoffs happens.

Personally I applied right after I received news of a layoff but expect EI to be delayed if you don’t have the code.

Part 4 After a layoff

  • Check in on yourself for mental health sake and physical health.

  • Review financial situation

  • Lean on your support circle

  • Re- evaluate your goals

  • Reflect on the time spent at company, update resume or linkedIn. / pro tip have an ongoing list for what soft skills and hard skills you’ve developed

  • Check on the packages offered from the company, (may get therapy/ career coaching, IMO make use of those offers)

  • Apply apply apply!

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