Employment Crisis – Financial Situation squeezes games companies. *UPDATED*

Earlier in the month, we reported that Crystal Dynamics were downsized and in December, Free Radical & Factor 5 disappeared, amongst others.  Since then, there have been significant rumours of layoffs at larger companies including Microsoft, EA and Sega.

Unfortunately, these days, rumours have a habit of coming true.

Kotaku are keeping track of all developments but a few are outlined below…

In the most high profile layoff, Microsoft are too shed 5000 staff, a quarter with immediate effect.

EA have let go of Pandemic’s Australian studio and have trimmed staff from Mythic (Warhammer Online), Black Box (Need for Speed) and EA Tiburon (various EA Sports titles).

Sega of America have cut 30 staff with immediate effect.

Update

Gamesindustry.biz are reporting that EIDOS’s mobile platform development squad, Rockpool Games, based in Manchester have been immediately closed, casting off 14 jobs.

In a surprise move, as part of the above Microsoft cull, ACES Studio, the guys behind the Flight Sim, Combat Flight Sim & Train Sim series, have been given their marching orders.

Update 2

Further Microsoft shenanigans abound – Chris Early, GM of the Games for Windows: Live team, was among the 1600 culled.  To quote a Kotaku commentor…

cut the head off the snake, and the body will die