Gaming Industry Layoffs in 2026: Severance Rights for California Employees

The gaming industry has been hit hard in 2026. Riot Games cut 82 employees in LA. Ubisoft cut 93 in San Francisco. Keywords International cut 128 in SF. That's over 300 gaming workers in California alone, and these are just the layoffs large enough to trigger WARN filings.

Here's something most people don't realize: severance agreements are negotiable. The offer you received is a starting point, not a final number. Employees negotiate better severance packages with the help of an attorney every day, and the results are often meaningfully better than the initial offer.

We review and negotiate severance agreements on contingency. That means no upfront cost to you. Our fee comes only from the additional amount we negotiate above what you were already offered. If we don't improve your package, you don't pay. There's no downside to having an attorney look at what you've been given.

WARN Act Across the Industry

Each of these layoffs independently triggers Cal-WARN. The employers owed 60 days' advance notice. If they didn't provide it, you may be owed up to 60 days of pay and benefits on top of your severance. This applies whether you were at Riot's West LA office, Ubisoft's SF studio, or Keywords' SF operation.

IP Assignment Is the Biggest Gaming-Specific Issue

Game development produces an enormous amount of intellectual property: code, art assets, character designs, level layouts, narrative content, game mechanics, proprietary tools. Your severance agreement may include provisions that confirm or expand the company's claim on work you created.

California Labor Code Section 2870 protects inventions you create on your own time using your own resources that don't relate to the company's business. But "relate to the company's business" is broad in gaming. If you're working on a personal game project, make sure the severance agreement draws clear boundaries. Push for language that explicitly excludes personal projects created outside of work.

Non-Competes Are Void, and That Matters in Gaming

Gaming studios are notorious for including non-compete clauses in employment and severance agreements. In California, these are void under Business and Professions Code Section 16600. AB 1076 made it illegal to include them.

This is especially important in gaming because the talent pool is concentrated. West LA and Santa Monica are the gaming hub for Southern California: Riot, Activision Blizzard, Santa Monica Studio, Naughty Dog, Respawn, Infinity Ward. San Francisco has its own gaming presence. You should be free to move between studios without restriction.

Crunch Culture and Wage Claims

Before you sign a release of all claims, think about whether the studio owes you money. Gaming is infamous for crunch periods where employees work long hours. California's overtime laws are strict. If you worked through meal breaks, stayed past your shift without overtime pay, or had time shaved from your records, those are claims with real value under the Labor Code. The DLSE handles wage complaints. Once you sign the release, those claims are gone.

Foreign-Owned Studios

Riot is owned by China's Tencent. Ubisoft is French. Keywords is Irish. None of that changes your California rights. WARN Act, OWBPA, non-compete voidability, and final pay rules apply regardless of the parent company's country. However, equity plans may follow foreign market rules. If you hold stock in a foreign-listed parent company, understand how the equity plan handles involuntary termination for US employees specifically.

Standard Protections

OWBPA: 45 days for employees over 40 in a group layoff. Final pay including PTO on your last day per Labor Code 201-203. The general release waives all claims. Consider your options before signing.

If you were laid off from a gaming company in California, our employment attorneys can review your severance agreement. We handle cases in both LA County Superior Court and San Francisco Superior Court. Free consultation.