One thing they never tell you about is that most people who lose jobs get pay cuts at game companies are not actual people who make the game like programmers asset artists or animators.
Its usually less meaningful development roles that like to pretend they matter.
CEO just happens to be the only one of these less meaningful roles that manages to stay in power due to connections and nepotism.

When was the last time you saw an actual programmer complain about losing a job at a game company.
It almost always writers community menages or concept artists.