Industry of video games in Sweden faces turmoil as a 'combustible mix' triggers widespread job cuts
The Swedish gaming industry, renowned for its significant contributions to video games and gambling, is currently grappling with a series of challenges.
In a recent statement, Per Strömbäck, from Dataspelsbranschen, Sweden's trade association for video game companies, acknowledged a shift in the labour market. Large financial inputs from China and North America have diminished, prompting major companies to focus more on consolidation. Strömbäck did not describe the situation as a crisis, but did agree that times are tougher.
This shift is particularly concerning for the thousands of international workers employed in the industry, many of whom are on work permits. One of The Local's readers, from a non-EU country, is currently experiencing stress due to multiple employer bankruptcies and the potential revocation of his work permit.
The gaming industry's economic contributions are substantial, and any downturn can affect the broader economy, potentially reducing job opportunities for international workers. For instance, King, the gaming company behind Candy Crush, is letting 200 people go, with 96 of those roles being in Stockholm. King is attempting to get employees to resign voluntarily with a deadline of July 18th to accept or reject the offer.
King's downsizing is not an isolated incident. Cult of the North, a games company, recently went bankrupt despite receiving an investment of 106 million kronor two years ago. Adam Schaub, the founder of Cult of the North, announced the bankruptcy on LinkedIn.
Karl Magnus Troedsson, the founder and partner of Behold Ventures, a games-focused risk capital company, and a former CEO of Swedish games company DICE, described the current situation as a 'negative perfect storm'. Troedsson, along with many other industry insiders, is working to navigate these challenging times.
Unionen, a union with over 400 members and a local union club at King, has been in discussions about signing a collective bargaining agreement, but these discussions have yet to bear fruit. Despite the challenges, many of Dataspelsbranschen's members are reporting an influx of qualified applications for open positions, unlike before.
As the Swedish gaming industry navigates through this period of change, the impact on international workers cannot be overlooked. The industry's resilience and ability to adapt will be crucial in ensuring job security and maintaining the vibrant community of international talent that has contributed to its success.
- The current shift in the Swedish gaming industry, characterized by financial challenges and consolidation, is significantly affecting the employment of the thousands of international workers who hold work permits.
- The economic contributions of the gaming industry are substantial and any downturn, as seen in the company layoffs and bankruptcies, can have far-reaching impact, potentially reducing job opportunities for international workers and affecting the broader economy.
