Why are Japanese developers not undergoing mass layoffs? -- spoilers: better employment laws
Why are Japanese developers not undergoing mass layoffs? -- spoilers: better employment laws
On 14th June, Tango Gameworks employees had a pizza party. It was the studio's final day following the announcement of …
Layoffs and studio closures have been an unfortunately-common occurrence across the industry since last year, with layoffs in 2024 already matching 2023's total of over 10,000 developers being put out of work. Yet if there is one bright spot to find in this bleak reality, it is, ironically, in the same city as the departed Tango. Its closure, undeniably tragic, is an exception in a country seemingly insulated from the industry-wide devastation occurring beyond its borders.
It's a trend across the industry in the country. In my own conversations with Japanese developers, many have acknowledged the concerns for friends in the industry internationally while admitting a level of confidence and job security that simply no longer exists no matter the company beyond Japanese borders.
Under Japanese employment law, layoffs are incredibly difficult to implement – unless the company is under severe financial difficulty and at risk of insolvency in a manner layoffs could alleviate, after other cost-saving measures have been undertaken, layoffs for permanent employees are all-but impossible.
You're viewing a single thread.
Yeah, if one person is fired from the company the default thought in Japan is that person must have done something very wrong to even get to that place, as it's quite rare for fulltime salaried employees.
If a group of people are laid off, in Japanese culture that reflects very poorly on the company, suggesting that management was irresponsible to lead the company into this situation.
If a group of people are laid off, in Japanese culture that reflects very poorly on the company, suggesting that management was irresponsible to lead the company into this situation.
I mean, that's the actual truth. All these tech layoffs are just happening because Executive Leadership Teams copy each other. A few years ago they were all hiring at the same time too.
You should hire when others are firing so you get the best employees. You should hold off on hiring when everyone else is hiring, so you don't overpay. It's pretty simple.
Exactly. We need better laws here in the states. My company has had three layoffs and another is around the corner, in just two years. Yet, they keep acquiring other companies.
Yet, they keep acquiring other companies.
We need better laws, but we also really, really need to start enforcing the antitrust laws we already have again.