Reggie Fils-Aimé warns about mass layoffs in the game industry

Reggie Fils-Aimé, the former president of Nintendo of America, recently made a pointed remark about the alarming trend of mass layoffs across the game industry. Speaking at an event at New York University (NYU), he spoke with professor Joost Van Dreunen and called companies that carry out such layoffs a "red flag" for prospective employees, especially senior developers. His comments come amid growing concerns about job security in the sector.

A look at the industry’s problems

Fils-Aimé discussed Nintendo’s culture, where the company focuses on developing its employees for the long term. He contrasted that approach with companies that have recently carried out mass layoffs, such as Activision Blizzard. He stressed that while he believes most leaders in the industry are not bad managers, they should still be held accountable for their decisions, especially when those choices lead to major staff reductions.

The impact of layoffs at Xbox

In particular, Fils-Aimé pointed to recent layoffs at Xbox. In January 2024, reports surfaced of a layoff round in which nearly 2,000 employees lost their jobs, resulting in an 8.6 percent reduction in the total workforce. Later that year, another 650 layoffs followed, and in 2025 another major round hit about 10 percent of King’s staff. Finally, Microsoft carried out mass layoffs in July 2025, with 9,100 jobs lost across the company, including Xbox.

Advice for future job seekers

During his talk, Fils-Aimé offered valuable advice to senior developers considering a new job in the industry. He said it is important to research a company’s track record, especially whether it has carried out mass layoffs in the past five or six years. That can be a sign that the company may do it again, which is a red flag for potential employees.

Fils-Aimé’s comments are not without consequences for how the game industry is perceived, especially given the frequent reports of layoffs and internal culture at various companies. His call for responsible leadership and employee development stands in sharp contrast to the business realities of today’s gaming landscape.