Schell Games conducts major layoffs, cutting roughly 40% of workforce amid industry challenges
Schell Games, developer of the I Expect You To Die series and Among Us VR, has laid off approximately 40% of its staff—49 employees—in its second round of cuts this year. The company cited ongoing difficulties in the game industry as the reason for the reductions, which affected roles across engineering, design, marketing, QA, and research. Despite the downsizing, the studio confirmed that its upcoming mixed reality game Dragon Grove remains on track for a spring 2027 release.
Schell Games, based in Pittsburgh and known for titles like I Expect You To Die and Among Us VR, laid off approximately 49 employees—about 40% of its workforce—in a second round of cuts during October 2026, following an earlier reduction of roughly 10% in August. The company confirmed the layoffs via a LinkedIn post on October 31, citing ongoing industry-wide challenges as the primary reason for the restructuring. Roles affected spanned engineering (Unity and Unreal), design, marketing, QA, research, IT support, and product management. Despite the significant downsizing, Schell Games affirmed that its upcoming mixed reality title, Dragon Grove, remains on schedule for a spring 2027 release across Meta Quest 3, Quest 3S, and Meta VR Glasses. The studio had previously reported having about 125 employees after the August cuts, suggesting a current headcount of around 76, though its official website still lists over 150 team members. This marks the first time in Schell Games’ history since its founding in 2002 that it has implemented layoffs, indicating a sharp shift from prior stability. The company emphasized its commitment to helping affected employees transition by encouraging recruiters to contact its careers email.
The broader context includes rising financial pressures across the gaming industry, particularly for studios balancing original IP development with work-for-hire contracts. Schell Games’ dual focus—creating proprietary games while servicing external clients—may
The layoffs at Schell Games reflect a broader trend of consolidation and downsizing in the global gaming sector, where studios are increasingly pressured to cut costs amid shifting consumer spending and platform-specific competition. As virtual reality and mixed reality markets mature, companies investing heavily in niche experiences—like Schell’s focus on immersive puzzle games—face heightened risk when revenue streams from premium or free-to-play models fail to scale. The impact extends beyond the immediate workforce: affected employees may struggle to find roles in a tightening market, especially those specialized in VR development and educational game research. Adjacent sectors, including VR hardware providers like Meta, could see ripple effects if developer confidence wanes, potentially slowing content creation for new headsets. A comparable case is the 2023 layoffs at Unity Technologies, which similarly signaled a downturn in developer spending and project viability. What may fol