UK games sector loses 1,537 jobs as 14-year growth streak ends

• Medium-sized studios recorded the steepest decline, with headcount falling by 21.6% during the period.
• Very large studios cut jobs more cautiously, but still recorded a net loss of more than 500 staff.
• Small studios remain the backbone of the UK industry, with the number of teams employing fewer than 15 developers continuing to grow.

The UK video games sector lost a net 1,537 development jobs between April 2024 and September 2025.

That's according to the new Making Games in the UK report from industry trade body TIGA. The figure represents a 4.5% annualised decline and ends 14 consecutive years of workforce growth. 

When supply chain effects are included, the total estimated job losses rise to 4,347 roles

The sharpest reductions recorded are among mid-sized studios. Teams with 16 to 40 staff reduced their combined creative headcount by 21.6% (503 staff), while studios employing 41 to 149 staff cut their workforce by 13.1% (761 staff). Very large studios with more than 150 staff also reported a 5.7% (523 employees) decline in staffing over the same period.

Despite the broader contraction, studios with one to four staff increased slightly in number, while teams employing five to 15 developers also grew, adding a net 148 roles.

Larger teams in decline

TIGA said the staff reductions were also reflected in the studio size breakdown. The number of studios with 16 to 40 staff fell from 90 to 71 between May 2024 and September 2025. Meanwhile, the number of studios with 41 to 149 employees decreased from 73 to 63, while those with 150+ staff fell from 30 to 28.

The number of studios that employed over 250 staff remained at 16.

TIGA is calling on the UK Government to strengthen the Video Games Expenditure Credit, warning that without policy support, short-term disruption could evolve into a longer-term structural decline.

“These findings underline both the scale and the challenges of the UK games development ecosystem," said TIGA CEO Richard Wilson. “While the UK remains home to a number of substantial studios employing hundreds of staff, we have also seen notable headcount reductions among large and very large studios. 

“At the same time, the sector continues to be built on a broad base of micro and small studios, many of whom face significant pressures in a highly competitive global market. 

“That is precisely why TIGA continues to champion policies that support investment, help studios scale up, and strengthen long-term sustainability across the UK development landscape.”