"They've watched so many people lose their jobs, that has an impact" – Managing morale in the wake of layoffs

GamesIndustry.biz says the industry’s wave of layoffs has left a second, quieter problem in its wake: the morale of the people who remain. HR leaders Emma Smith of Hestia Talent Partners and Michael Elliott Chan of Compulsion Games argue that repeated rounds of cuts, project cancellations, and studio closures have eroded trust, and that simply declaring stability is not enough to restore it.

Their advice is bluntly practical. Studios need to communicate intentions regularly, follow through on commitments, and have difficult conversations early rather than letting staff fill in the blanks. Chan stresses open-door check-ins and one-to-one conversations, especially with quieter team members, while Smith says rebuilding trust has to come before trying to manufacture motivation.

The discussion also widens the lens beyond layoffs themselves. Smith points out that career growth still matters even in flatter orgs, but development may now mean adjacent skills, mentoring, or ownership rather than a promotion ladder. For developers, that means leadership needs to be explicit about what progression is actually available instead of dressing up stopgaps as advancement.

There’s also a reminder that HR teams are absorbing the same turbulence they’re helping others navigate. With more reactive work and less room for long-term culture building, the burden on people ops has grown sharply. The practical takeaway for studios is clear: if you want teams to stay engaged in a down market, you have to make stability feel real through behavior, not messaging.