European studios increased freelance spending 63% in 2025 as hiring shifts toward contract work

• Studios are not cutting budgets, they are redirecting them toward freelancers.
• Game development is shifting to modular, on-demand production.
• AI and layoffs are accelerating the move to flexible teams.

European game studios increased spending on freelancers by 63% in 2025 as global freelance spend rose by 55%. 

That's according to a new report by Mellow, which showed that the number of contractors working with studios grew 24% in Europe and 21% worldwide. 

Short-term hiring is also accelerating. Contracts lasting one to three months grew between 33% and 44% as teams moved toward modular production pipelines where specialists are brought in for specific development phases rather than long-term employment.

Moreover, remote talent earnings are also rising. Average monthly freelance income increased 19% globally to €1,900 ($2,225). Management roles led growth at +37%, followed by UX specialists at +27% and artists at +23%. In Europe, illustrators saw the largest jump at +68%.

Industry restructuring 

The data suggests budgets are not shrinking but being redirected toward flexible, project-based roles.

Furthermore, it links this shift to a mix of layoffs between 2022 and 2026, the rise of live service models, and ongoing changes driven by AI tools. Studios are increasingly prioritising cost control, scalability, and access to specialised talent.

“Everyone's been talking about layoffs in gamedev, which is a huge thing," said Mellow VP of growth Alex Norovyatkin. “But our data tells a different story - the industry isn't shrinking, it's restructuring."

“In 2025, European studios spent 63% more on external talent than the year before. The talent and the budgets are still there, just flowing differently.”

The study analysed more than 2,000 freelancers and over 150 game companies across Europe, North America, and MENA. You can access the full report here.