Schell Games Lays Off 49 Employees in Second Cut This Year

A veteran VR studio that avoided layoffs for 24 years just cut 40 percent of its staff, showing past stability does not guarantee safety.

Layoffs · Source: UploadVR

What happened

Schell Games laid off 49 employees this week. This represents about 40 percent of the studio's workforce. The cuts occurred across the board at the Pittsburgh-based virtual reality developer. The studio is known for popular virtual reality titles like Among Us 3D and the I Expect You To Die series. They are currently developing a new puzzle game called Dragon Grove, which is expected to launch in spring 2027.

This is the second round of job cuts at Schell Games in just three months. The studio made its first-ever layoffs in August 2026. Before that late summer reduction, the company had never eliminated jobs since it was founded in 2002. The studio previously listed over 150 team members on its website.

The company issued a statement confirming the cuts are necessary to ensure a sustainable future. They noted it is incredibly painful to lose fantastic talent. The broader game industry is going through a challenging time right now. In August, an employee mentioned the industry was hemorrhaging, a sentiment shared by other studio founders.

By the numbers

Why it matters

A company's history of job security no longer protects workers from sudden industry shifts. Schell Games went 24 years without a single layoff. Now, they have cut a large portion of their team twice in one year just to stay stable. This shows that even established studios must adapt quickly when market conditions slow down.

The broader virtual reality gaming sector is struggling right now. Studios like Mighty Coconut, Kluge Interactive, Survios, Camouflaj, and Combat Waffle have all reduced staff recently. Other developers like Sanzaru Games, Twisted Pixel, Armature, and Polyarc Games have shut down completely. Job seekers in gaming need to prepare for fewer open roles and intense competition as displaced workers look for new homes.

Who this hits

Game developers

Game developers and designers face a shrinking job market in the virtual reality space. Multiple studios are closing or reducing headcount, meaning fewer landing spots for displaced talent.

H-1B and OPT workers

International workers in the gaming industry must act quickly if they lose their jobs. A sudden 40 percent staff reduction means you need a backup plan ready before your grace period begins.

New graduates

New grads looking to enter the gaming industry will find fewer entry-level roles available right now. You may need to look outside of virtual reality studios to find your first job.

What to do this week

See who's hiring right now on GiraffyReach

My take

I always tell job seekers not to rely on a company's past record for comfort. Schell Games went 24 years without cuts, but market realities forced their hand twice this year. Job security is not about company history, but about how a company survives today. Focus on keeping your own skills sharp and your network active so you are ready for anything.

Sources

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