American video game developer Illfonic has announced an undisclosed number of job cuts in its team due to realigned strategy. However, it is believed that a significant number of employees are expected to be impacted by the layoff at the gaming company.

IllFonic CEO and Co-Founder Charles Brungardt took X (formerly Twitter) to make the layoff announcement. He also raised concern about the challenges being faced by the gaming industry and subsequent layoff across the industry. He expressed deep regret over the impact on affected team members and urged companies who are in hiring spree to reach out to those who are impacted by the job cuts at his company.

Here is what he said on X about layoff

Not only IllFonic, but other gaming studios also announced a significant number of job cuts. It includes Activision Blizzard, Microsoft, and NetEase to name a few. These layoffs are attributed to the use of generative AI for game development, economic factors, and a potential overcorrection after a boom period during the pandemic.