Schell Games Reduces Staff in Second Round of Layoffs This Year

Schell Games, the prominent Pittsburgh-based developer known for its hit VR puzzle franchise I Expect You To Die and its work as a co-developer on Among Us VR, has confirmed it is implementing a second round of layoffs in 2024. The studio, which also produces various educational VR experiences, cited the ongoing and challenging state of the broader video game industry as the primary driver for this difficult decision.

According to a report from GamesIndustry.biz, the studio did not disclose the specific number of employees affected by the staff reduction. However, the company confirmed that the cuts impact a wide range of departments across the organization, including engineering, art, design, sound, marketing, IT support, research, and quality assurance. In a formal statement posted to LinkedIn, the studio expressed deep regret, noting that while the reduction is intended to ensure a sustainable future and maintain stability, it represents a painful loss of fantastic talent for the team.

This event follows an initial round of layoffs that took place in August 2024, which marked the first time the company had reduced its workforce since its founding in 2002. For over two decades, the studio had successfully avoided such measures, even as the landscape for VR and independent game development shifted.

Shifting Priorities

CEO Jesse Schell has previously been a vocal advocate for prioritizing stability to avoid workforce reductions. In comments shared with GamesIndustry.biz earlier in 2024, Schell emphasized that the key to avoiding layoffs is to prioritize stability, stating that while there are no guarantees in business, a long-term commitment to such a strategy can keep a company stable. However, he also provided a candid perspective on the current economic climate, likening industry layoffs to an avalanche. He suggested that when a company determines that a layoff is necessary, it is often a strategic choice to act while other studios are doing the same. By aligning with general market trends, companies avoid appearing as an isolated failure, allowing them to frame the reduction as a response to the wider economic environment rather than internal mismanagement.

Why it matters

For players and dedicated fans of titles like Among Us VR and the I Expect You To Die series, these developments highlight the ongoing volatility within the virtual reality development sector. While the leadership at Schell Games maintains that these structural changes are necessary to secure the studio’s long-term future, it remains to be seen how these personnel shifts will influence the production pace, content updates, or the development of new projects. Players should continue to monitor official channels and future announcements regarding the studio’s development roadmap to better understand how this organizational restructuring will affect the support and maintenance of their favorite titles moving forward.