2023’s Great Games Were Overshadowed by a Dark Cloud of Layoffs
by Ash Parrish
December 30, 2023
Introduction:
(The Verge) Layoffs are an unfortunate reality of any industry, but the scope and scale of video game layoffs in 2023 are far beyond a typical year. More than any specific video game or piece of news, layoffs defined the past 12 months. Companies large and small have felt their impact. Unofficial figures estimate 9,000 workers have been affected, and at the heart of it all are corporations that valued growth at all costs — including people.
In September, Epic Games laid off 830 employees. In a statement, CEO Tim Sweeney wrote, “We’ve been spending way more money than we earn. [...] I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic.” Some of that spending was on companies like SuperAwesome and Bandcamp which Epic bought in 2021 and 2022, respectively. Both companies were sold off shortly after Epic announced layoffs.
Epic makes Fortnite, a multibillion-dollar revenue generator; it licenses the Unreal Engine software that many developers use to make games, including Final Fantasy VII Remake, Lies of P, and Star Wars Jedi: Survivor; and it has its own (unprofitable) gaming storefront. And Epic still spent so much of that money that, in order to maintain a level of profitability acceptable to investors, it had to let 830 people go.
Over the last two years, Embracer Group has made headlines for its numerous purchases of gaming studios, media companies, and the IP rights to The Lord of the Rings. This year, the company made an immediate about-face and began a massive restructuring program because of a $2 billion dollar investment deal that fell through. Axios reported that deal was with Savvy Games Group, the gaming arm of the Saudi government’s Public Investment Fund. In the aftermath of this failed investment strategy, Embracer has shuttered three studios, is looking to sell others, canceled numerous projects, and has laid off over 900 employees.
Job openings nudged lower in November, down to 1.4 per available worker
Source: CNBC
Published Wed, Jan 3 2024 10:50 AM EST
Demand for workers fell to its lowest level in more than 2½ years in November while hirings and layoffs both moved lower, the Labor Department reported Wednesday.
The department’s Job Openings and Labor Turnover Survey showed employment listings nudged lower to 8.79 million, about in line with the Dow Jones estimate for 8.8 million and the lowest since March 2021. Openings fell by 62,000, though the rate of vacancies as a measure of employment was unchanged at 5.3%.
In addition to the modest move lower in openings, hiring fell by 363,000, moving the rate down to 3.5%, a 0.2 percentage point decline. Layoffs dropped by 116,000, with the rate holding steady at 1%. A report last month from the Labor Department showed a net increase in nonfarm payrolls of 199,000 in November. A report Friday is expected to show growth of 170,000.
The ratio of job openings to available workers fell to 1.4 to 1, still elevated but down sharply from the 2 to 1 level that had been prevalent in 2022. Companies had faced a severe supply-demand mismatch in the period after the Covid pandemic began, a situation that has made gradual progress back to a more normalized state.
ADP Research Institute Reports Private Sector Gained Jobs for Fourth Straight Month to End 2023 by Taylor Giorno
January 4, 2024
Introduction:
(The Hill) Private employers added 164,000 jobs in December and wages were up 5.4 percent from last year, according to the National Employment Report released Thursday by the ADP Research Institute.
“We’re returning to a labor market that’s very much aligned with pre-pandemic hiring,” Nela Richardson, ADP’s chief economist, said in a press release. “While wages didn’t drive the recent bout of inflation, now that pay growth has retreated, any risk of a wage-price spiral has all but disappeared.”
December marked the fourth consecutive month of private-sector job growth, with a big bump in leisure and hospitality hiring — two industries that were decimated during the pandemic.
High interest rates implemented by the Federal Reserve have put a damper on some sectors, the ADP report notes. While construction hiring remained strong, manufacturers struggled.
The ADP employment report sets the stage for Friday’s jobs report. The Bureau of Labor Statistics will release the federal government’s accounting of December job gains as Congress returns from its holiday break and the Republican presidential primary is slated to kick off this month.
U.S. payrolls increased by 216,000 in December, much better than expected
Source: CNBC
Published Fri, Jan 5 2024 8:31 AM EST Updated 2 Min Ago
The U.S. labor market closed out 2023 in strong shape as the pace of hiring was even more powerful than expected, the Labor Department reported Friday.
December’s jobs report showed employers added 216,000 jobs for the month while the unemployment rate held at 3.7%.
Economists surveyed by Dow Jones had been looking for payrolls to increase 170,000 and the unemployment rate to nudge higher to 3.8%.
This is breaking news. Please check back here for updates.
Employers added 216,000 jobs last month, according to the Labor Department. The unemployment rate held steady at 3.7%.
Unemployment has now been under 4% for almost two years — the longest streak of rock-bottom jobless rates since the Vietnam War.
"The labor market ended 2023 on a solid footing," said Nela Richardson, chief economist for the payroll processing company ADP. "We'll see what 2024 will bring."
December's job gains were concentrated in government and health care. Retailers added 17,000 jobs, suggesting a solid finish to the holiday shopping season.
President Biden will be reelected to another 4 years in office later this year! There's no way in hell Trump beats him.
