tinyE: My bad, but I happy to hear that. I love Seattle and I want to see it continue to take off. Still that leaves the thread unanswered. My brother has his own computer company in Sacramento and while it's not a game site several of his clients are game related; maybe he could give me a feel for why this is happening.
With the way that Valve is structured (completely flat org, with only GabeN being above anyone else) it's difficult to know why something like this happens. It may not be a layoff and it could simply be that a number of people decided to start their own company or something like that. Without someone directly involved speaking up it's nearly impossible to know what's going on.
Momo1991: I'd have said Bellevue but most people at least have some concept of where Seattle, WA is! To me Bellevue will always be a mental institution in NYC ;-p
There are a ton of huge companies in the area -not the least being Microsoft (across the river), Boeing, and Amazon etc. But I've heard it said that one shouldn't move there (or Portland, OR for that matter) without a job in hand....
My comment was more to illustrate that Valve is outside of Seattle rather in Seattle itself, but you're right, when I talk to my East Coast friends they always get that funny look when I mention living in Bellevue when I was younger.
As for not moving without a job, I'd fully agree with that. Mainly because all the hiring that's being done is for highly skilled fields, where they will interview and hire you from anywhere in the world and then pay to move you out here. There's a ton of current openings and more in the future, but don't show up at the door expecting to get a job in the next hour.