Schell Games Announces Layoffs Impacting 10 Percent of Workforce

Schell Games, the veteran VR studio recognized for its spy-themed puzzle series I Expect You to Die and Among Us 3D, has confirmed that it has laid off around 10 percent of its workforce. This decision marks the first layoffs in the studio's 24-year history, as reported by Game Developer. Multiple employees shared their experiences on LinkedIn, expressing their support for colleagues affected by the layoffs. Principal Engineering Manager Allison Salmon noted the emotional impact of the situation, emphasizing that the layoffs were not due to individual performance but rather a reflection of broader industry challenges.

CEO Jesse Schell acknowledged the layoffs in a statement to Good Virtual Reality, explaining that the decision was necessary for rebalancing the studio's operations. Following the layoffs, Schell Games will have approximately 125 employees. Schell highlighted that the studio had been transitioning to focus on a smaller number of larger titles, but the current industry climate necessitated a shift towards a greater number of smaller projects, which requires a different team structure.

Despite the layoffs, Schell assured that VR remains a significant part of the studio's future, with a new VR title currently in production and additional proposals for future projects. He noted that while VR used to comprise 80 percent of their work, it now accounts for about 30 percent, with the studio also engaging in VR-adjacent projects, such as interactive projection for location-based entertainment.

Schell has historically been an advocate for job preservation, previously stating that layoffs are a last resort. In a 2024 interview, he emphasized the importance of protecting jobs, even at the cost of financial risk. The studio is also known for its other titles, including the I Expect You to Die trilogy and the horror-themed Silent Slayer: Vault of the Vampire.

The recent layoffs at Schell Games reflect a broader trend in the VR industry, where several studios have faced challenges, particularly following Meta's closure of multiple VR studios earlier this year. This shift has resulted in the cancellation of several high-profile VR projects, indicating a significant change in the funding landscape for VR games.