Schell Games Announces Second Round of 2024 Layoffs, Citing Industry Challenges

VR developer Schell Games has announced its second round of layoffs this year, confirming the news through a statement posted to LinkedIn. The Pittsburgh-based studio, known for its VR puzzle franchise I Expect You To Die and for co-developing the VR adaptation of Among Us VR, did not disclose the exact number of employees affected. The cuts span engineering, art and design, sound, marketing, IT support, research, and quality assurance roles, signaling a broad restructuring rather than a targeted reduction.

This latest wave follows an initial round of layoffs in August 2024, which marked the first time the company had reduced staff since its founding in 2002. For a studio that has operated for over two decades without layoffs, two rounds in a single year underscores the severity of the current market pressures facing mid-sized VR developers. The company also develops educational VR experiences, a segment that has not insulated it from the broader downturn.

What Was Announced

Schell Games framed the decision as a necessary step to secure the studio's long-term viability. In its LinkedIn statement, the company said it was "very sad to say that due to this challenging time in the game industry, Schell Games has found it necessary to lay off a significant number of employees in order to ensure a sustainable future for our studio." The statement acknowledged the human cost, adding that "while this will enable us to stay stable moving forward, it is incredibly painful as we are losing some fantastic talent." The breadth of departments affected suggests the studio is resizing its entire operation rather than shuttering a specific project.

The studio's portfolio includes the acclaimed I Expect You To Die series, a flagship VR puzzle franchise that has been a consistent presence on Meta Quest and PlayStation VR platforms. Schell Games also served as co-developer on Among Us VR, the immersive adaptation of Innersloth's social deduction hit. Beyond commercial entertainment, the company has built a reputation for educational VR experiences, working with partners on training and learning applications. That diversification, once seen as a stabilizer, has not prevented the need for successive workforce reductions.

Key Details

• Second round of layoffs in 2024, following initial cuts in August
• First layoffs since company founding in 2002
• Affected departments: engineering, art and design, sound, marketing, IT support, research, and QA
• Number of employees impacted not disclosed
• Studio based in Pittsburgh, Pennsylvania
• Known for I Expect You To Die VR franchise and co-development of Among Us VR
• Also develops educational VR experiences

Why It Matters

CEO Jesse Schell has previously spoken publicly about the importance of prioritizing stability to avoid layoffs. In a 2024 interview with GamesIndustry.biz, he said:

"It's business. There are no guarantees. But it comes down to what you prioritise. If you prioritise stability, you can stay pretty stable, but you've got to give it a lot of time and thought and attention."

Jesse Schell, CEO

The fact that his own studio has now conducted two rounds of layoffs within months highlights how difficult that stability has become to maintain, even for veteran developers with diverse revenue streams.

Schell also offered a candid perspective on the timing of industry-wide layoffs, describing them as "like an avalanche." He noted that "if a company needs to do a layoff, it's a smart idea to do it when everybody else is doing it. Then it's like, Well, it's not us. That's just the economy right now." His remarks suggest a strategic calculation behind the announcement timing — aligning with a wave of industry reductions to minimize reputational damage. Whether that normalization arrives as quickly as he hopes remains uncertain for the developers now looking for new roles.

The VR sector has faced particular headwinds in 2024, with hardware adoption slowing and several high-profile studios scaling back or closing. Schell Games' situation reflects a broader pattern where even established developers with successful franchises are not immune. For players, the immediate impact on Among Us VR and I Expect You To Die support remains unclear, though the loss of QA, engineering, and design staff could affect future content pipelines. The studio's next moves — whether it stabilizes at its new size or faces further reductions — will be a bellwether for the mid-tier VR development landscape.