Restructuring and Redundancies: A Tough Year for Talent

The year opened with a continuation of the industry contraction that began in 2023. Games studios, both indie and established, faced project cancellations, investment pullbacks, rising development costs, and the ongoing challenge of an overcrowded market[1]. Redundancies were widespread, and they're still happening. HR teams often found themselves managing multiple parallel consultation processes while trying to support employees through uncertainty and anxiety.

The emotional impact was significant. HR teams acted as counsellors, mediators and coaches while supporting departing and remaining employees.

The Employment Rights Bill: A Legislative Shake-Up

The UK’s Employment Rights Bill created one of the biggest shifts in employment legislation in years[2]. 2025 has been a year of guesswork for HR teams, thanks to the rolling updates to the Employment Rights Bill. Day-one entitlements, the shift to a newly announced six-month unfair dismissal qualifying period, changes to zero-hours rules, the fire-and-rehire ban - all big moves, but all announced in ways that left everyone scrambling to interpret what it actually meant in practice and wondering once the Bill passes what this will actually mean. And here we are still waiting for the Bill to pass....

Hybrid Working Grows Up (But Not Always Gracefully)

Hybrid and flexible working became more structured in 2025. Many studios set regular in-office anchor days while still promising flexibility[3]. Creative agencies leaned further into remote-first models, using wider geographical hiring to their advantage. HR worked hard to balance fairness, maintain culture and prevent presenteeism from returning.

AI Became Part of the Team

AI use accelerated across games and creative businesses,[4]. HR teams reviewed job descriptions, updated and introduced AI-use policies, worked to ensure ethical and responsible adoption, and supported employees through reskilling and workflow changes.

Wellbeing Moved from Initiative to Infrastructure

Wellbeing became a core business priority. Studios began embedding structured approaches: clearer anti-crunch commitments, mental health champions, coaching for managers, and “no-meeting” focus periods. HR teams recognised that sustainable creativity depends on psychological safety and work-life boundaries.

Looking Ahead to 2026

If 2025 was the year of disruption, we hope that 2026 will be the year of reconstruction. More stable hybrid models, clearer AI governance, and renewed hiring in growth areas are likely. It will also be a significant year operationally, with the ERB rollout scheduled for April and October 2026, milestones that will no doubt bring a hectic period of preparation and change. HR teams will continue shaping workplaces that are fair, supportive and resilient. 

References

[1] GamesIndustry.biz – UK and global games industry layoffs and restructuring reports (2023–2025).

[2] UK Government – Employment Rights Bill summaries and legislative updates (gov.uk).

[3] CIPD – UK hybrid and flexible working trends reports (2024–2025).

[4] Creative Industries Council – AI adoption in creative and digital sectors (2025).