Virtual Reality Studio Cuts 70% of Workforce Amid Industry Downturn

This article outlines the recent developments within a virtual reality game development studio experiencing severe downsizing, Emphasizing the potential hazards encountered by professionals in the… video game sector.

The gaming industry has faced turbulent times, with job security frequently coming into question. During the early 2020s, there was a surge in unemployment across the sector, although the pace of job losses eased somewhat by 2025. However, 2026 has begun on a somber note as the virtual reality studio is forced to make significant staff reductions.

A recent update from the company’s chief executive explained that, because of uncontrollable economic factors, the studio has no choice but to reduce its workforce by 70% starting January 7. Only 30% of the team will be retained in order to keep ongoing projects in motion.

Details regarding the number of affected employees are not precisely defined, but public profiles indicate that the studio employed roughly 50 individuals before the announcement. This suggests that about 35 people will lose their positions, while the remaining 15 will continue their roles.

The studio’s leader also noted that the overall decline in the gaming market, combined with the early challenges faced within the virtual reality domain—such as limited funding for platforms—has created an unsustainable environment for the company. Despite previous successes and significant efforts to reinvest in its team and the future of virtual reality, the studio finds itself unable to support larger-scale initiatives on its own.

In closing, the CEO reaffirmed a strong conviction in the transformative potential of virtual reality as a shared creative platform capable of making a lasting impact on society. He also mentioned that further insights on both the hurdles and possible opportunities within the industry will be provided at a later date.