Video Game Industry Layoffs: How Japan Remains Untouched Amid Persistent Job Cuts Hit Globally Over 3 Years; Know Why

New Delhi, July 10: Layoffs in the video game industry have been rough in 2024. Almost 10,800 employees reportedly lost their jobs in the first six months of 2024 around the world. The video game industry layoffs have affected many well-known companies and created uncertainty for employees everywhere. Video game layoffs have become a common occurrence in 2024, however, Japan has managed to avoid the layoff trend in a significant way.

As per a report of The Verge, in 2022, nearly 8,500 employees lost their jobs worldwide, increasing to 10,500 in 2023. As of the first half of 2024, there have already been 10,800 layoffs. In the last three years, it is been a difficult time for employees in the video game industry, as there have been many layoffs,  however, Japan remains unaffected by the video game industry's layoffs. As per reports, in the US, the unemployment rate in the video game industry is probably around nine percent, which is more than twice the national average. UiPath Layoffs: US-Based AI and Business Automation Software Company To Reduce 10% of Its Workforce Amid Restructuring.

How Japan Has Avoided the Gaming Industry Layoffs

Several Japanese companies, such as Sega, Koei Tecmo, Atlus and Nintendo, have preferred to invest in their workforce rather than reduce their staff. These companies have increased the salaries of their employees in recent years, apart from Tango Gameworks, which was closed by Microsoft under its US ownership. As per reports, Japan's strong labour rules play a big role in its ability to survive layoffs in the country. The Japanese employment law focuses on keeping worker's jobs secure. Employers cannot just fire someone without a good reason. They need to prove if there is a serious issue, like going bankrupt or shutting down the business. Dyson Layoffs: British Appliance Maker To Lay Off Around 1,000 Employees in Britain; Check Details.

Japanese companies, despite protective labour laws, are making strategic job cuts to stay competitive, as shown by Nintendo and Square Enix's recent layoffs in the international market showcase the strong protection provided by Japanese labour laws to domestic employees. The report also reveals that the US "at-will" employment doctrine empowers employers to fire their employees. In contrast, Japanese companies reportedly focus on long-term employee relationships and prioritise employee welfare over short-term financial gains.

(The above story first appeared on LatestLY on Jul 10, 2024 05:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).