Montreal video game sector hit by layoffs amid industry changes

Long considered one of the world’s leading gaming hubs, Montreal’s video game industry has been hit by a growing wave of layoffs and restructuring in recent months.

Industry leaders said the slowdown reflected broader global pressures, from reduced investment following the pandemic boom to changing hiring strategies and uncertainty surrounding artificial intelligence.

Jean-Jacques Hermans, executive director of La Guilde du jeu vidéo du Québec, estimated roughly 1,000 jobs had disappeared in the province’s gaming sector over the past six months alone.

“After the pandemic, we saw a slowdown in investment and a restructuring of some projects,” Hermans said. “Companies became much more cautious in the way they spent their money.”

Hermans said many studios also changed how they managed their workforce.

Rather than keeping employees between projects, Hermans said some companies increasingly opted to lay workers off and rehire for specific contracts later on, leaving more experienced professionals competing for fewer openings.

The impact has been felt across multiple studios in Montreal this year, including layoffs at companies such as Behaviour Interactive and Eidos-Montréal.

Despite the unsteadiness, Mark MacLean, vice-president of foreign investment at Montréal International, said the metropolis is continuing to attract interest from international companies.

“There are layoffs and cuts, but it also creates a pool of talent available to be hired,” MacLean said, describing the situation as part of a wider global correction in the industry.

“We want to make sure the ecosystem stays strong and that people continue to have opportunities here,” he said. “We do because of the level of talent in Montreal.”

MacLean also pointed to the city’s growing expertise in artificial intelligence as a competitive advantage.

“That will help separate us and keep us world class — one of the best ecosystems in the world for development,” he said.

Artificial intelligence, however, is also raising concerns among some workers worried about the future of jobs in the industry.

For his part, Hermans said AI had not yet directly caused the current round of layoffs but acknowledged changes are likely coming.

“We do expect there will be an impact,” he said. “The question is what kind of impact — on the skills companies are looking for and on the number of employees in the industry. We’re watching that very closely.”

Even with the uncertainty, Hermans said he believes Montreal could maintain its place as a global gaming hub — with some tweaks.

Part of that challenge, he said, comes to helping locally developed games stand out in an increasingly crowded market.

“We need to get better at promoting our games and making sure people recognize the work being done here,” he said.