How Layoffs Go Wrong—and the Right Way to Do Them

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Do layoffs mean studio leadership is bad?

While the popular answer is often "yes," the truth is more complex. Layoffs can reveal many things, from bad times in the market to failures to manage finances to corporate greed. But if you’re a leader, the real test is how you behave when your company’s survival is on the line.

Trent Kusters, the co-founder and Studio Head of League of Geeks, joins Ben Carcich for a deeply personal and frank discussion about his experience of laying off almost all of his employees and transitioning the studio into hibernation. Trent argues that leaders are often "ignorant and or untrained" in the critical business, legal, and ethical frameworks needed to navigate a shutdown event with compassion and integrity.

In this discussion, you'll learn:
✅ Why financial foresight and business savvy matter
✅ The true costs of a studio shutdown (even hidden ones like clearing out old desks)
✅ How to build a “rip zone” into your balance sheet to protect everyone
✅ Why living your company values—even when it costs hundreds of thousands—builds a true home for talent
✅ A five-point framework for planning, communicating, and managing a human-centric layoff

Trent’s GDC Talk (requires GDC Vault Access): https://gdcvault.com/play/1035252/Lea...

Learn more about Trent Kusters:
🔗League of Geeks Website: https://leagueofgeeks.com/
🔗LinkedIn:   / trentkusters  
🔗X (Twitter):   / trentkusters  

Connect with us:
🔗Ben’s LinkedIn:   / benjamin-carcich  
🔗LinkedIn:   / building-better-games  
🔗Instagram:   / building_better_games  
🔗Website: https://www.buildingbettergames.gg
🔗YouTube:    / @buildingbettergames  

#GameIndustry #GameDevLeadership #StudioLayoffs #FinancialLiteracy #GameProduction

00:00 Facing the Reality of Layoffs
00:38 Understanding the Impact of Layoffs
01:45 The Role of Studio Leadership
04:34 Navigating Financial Challenges
08:23 Preparing for a Shutdown Event
19:01 Transparency and Communication
33:49 The Importance of Business Savvy in Studio Management
34:22 Balancing Ethics and Business Decisions
35:01 The Role of Values in Leadership
35:27 Navigating Layoffs with Integrity
38:03 Legal and Ethical Considerations in Business
38:40 Learning from Other Industries
40:09 Balancing Financial Responsibility and Employee Welfare
41:35 The Importance of Company Survival
42:16 Learning from Industry Veterans
49:09 Preparing for Business Challenges
49:55 The Role of Continuous Learning
52:28 The Value of Peer Networks and Knowledge Sharing
56:36 The Importance of Financial Literacy for Directors
01:03:54 The Role of Business Vision in Creative Industries
01:06:51 Identifying Industry Changes
01:07:30 Exploring Financial Solutions
01:07:58 Leveraging Board Experience
01:09:24 Creative Financial Strategies
01:10:14 The Importance of Business Knowledge
01:11:55 Facing the Reality of Layoffs
01:12:54 Maintaining Company Values
01:15:19 Empowering and Supporting the Team
01:21:23 Framework for Handling Layoffs
01:27:26 Final Thoughts and Advice