HR Experts on Managing Morale After Industry Layoffs
HR specialists Emma Smith and Michael Elliott Chan discuss the impact of widespread job cuts on remaining staff and the strategies for rebuilding trust and
Tens of thousands of jobs have been lost in the video game industry over the past few years. The impact extends beyond those laid off to the employees who remain, according to HR experts speaking to GamesIndustry.biz.
Emma Smith, founder of Hestia Talent Partners and former HR lead at Creative Assembly, argues that not enough attention is paid to surviving staff. She notes many have endured multiple rounds of layoffs, project cancellations, and studio closures. "They've watched so many people lose their jobs, that has an impact," Smith says. She states that simply announcing stability does not restore a sense of safety; studios must rebuild trust through honesty and consistent action.
A Sense of Safety
Michael Elliott Chan, head of people at Compulsion Games, observes a market shift back toward employers and a heightened focus on job security. He says employees are now more proactive, building emergency funds and planning for potential downturns. For leadership, Chan emphasizes controlling the controllable through regular communication. This helps staff focus on their work and support each other. He advocates for an open-door policy and proactive check-ins, especially with quieter team members who may disengage when motivation wanes.
Smith adds that rebuilding trust is a responsibility for all studio leaders, supported by HR. She prioritizes trust over manufactured motivation. "When people start to trust what they are hearing and experiencing again, motivation has something much more solid to build on," she explains. Reassurance comes from honesty, consistency, and follow-through, even when circumstances change.
Staff Development
Ensuring career development for remaining staff is another key strategy. Smith suggests the industry must broaden its view of progression beyond promotions. Development can include deepening existing skills, cross-disciplinary experience, mentoring, or taking ownership of new tasks. She stresses the importance of honesty: if a promotion isn't possible, leaders should not misrepresent other opportunities.
Chan shows the need for communication to get ahead of industry news that worries staff. He advises leaders to show they are not afraid of difficult conversations. Transparent discussions from leadership can provide peace of mind and prevent rumors. Crucially, Chan advocates for one-to-one conversations over broad communications to demonstrate empathy and a human connection, countering the fear of being treated as a cog in a machine.
The Impact on HR
The ongoing turbulence also heavily affects HR professionals themselves. Smith notes the work has shifted from long-term cultural planning to reactive change management, continuing even after a restructure ends. HR staff often support others through redundancies while their own jobs may be at risk. Smith reminds HR teams to use the same support systems they recommend, like employee assistance programs and professional networks.
She warns against carrying the unsustainable emotional weight of everyone involved. Chan concludes by stressing the human element in human resources. In an era of AI-generated messages and constant bad news, he says anchoring a business in a people-first mindset is critical. This involves proactive listening, addressing concerns, and creating real connections through listening sessions, surveys, and celebrating team milestones.
