A new report says that the game industry in Ukraine has seen shifts in its workforce and operational structures.

According to Values Value, during Q1 and Q2, difficulties in securing new business contracts for the sector have resulted in redundancies.

“Market reports indicate that these downsizing trends began to intensify in the spring of 2023. Additionally, voluntary resignations have occurred due to prolonged periods of inactivity or dissatisfaction with the quality of new projects,” said the report.

Projects alongside hiring have come to a halt as well.

Due to the changing economic landscape, Ukrainian firms have opened 17 studios aboard, as some closed in Ukraine.

The state of the market also resulted in companies having to relocate professionals internationally. Ubisoft decreased its headcount in Ukraine by 348, while Playrix relocated 224 staffers. Meanwhile, GSC Game World has to relocate 200 game specialists from the country.

The invasion has also affected the country’s labor market. As of Q1 and Q2 of 2023, the report says that companies are now controlling their hiring.

While there’s been a decrease in job offers for entry-level positions, senior-level talent remains a challenge to find and recruit. The hiring process also takes longer now.

Additionally, the report noted that men in the Ukrainian games industry earn an average of €2,315 monthly, compared to the €1,544 per month of their female peers.

The report also said that the market’s economic conditions resulted in firms leaving Russia’s and Belarus’ gaming markets. Companies that cut their ties with Russia and Belarus included Plarium, Ubisoft, Wargaming, and Gunzilla Games.