Schell Games has laid off a significant number of employees, marking the veteran VR studio’s second round of job cuts in 2026. The company announced the decision on LinkedIn, describing the move as a painful response to challenging conditions across the games industry.
“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 company said. Schell added that the reductions would help it remain stable, while acknowledging the loss of employees it described as “fantastic talent.”
The layoffs were first brought to public attention through a Bluesky post by Kyle Hilliard, whose wife, Ashley Godbold, was among those affected, according to the original report.
This is Schell Games’ second round of layoffs this year. The first took place in August, when an employee attributed the cuts to an industry “hemorrhaging.”
The studio is currently developing Dragon Grove, a cozy 3D puzzle game announced at Meta Connect. It is expected to launch in spring 2027 for Meta VR Glasses and Quest 3. Schell Games’ previous projects include the I Expect You To Die series, Among Us 3D, Silent Slayer: Vault of the Vampire and Project Freefall.
Sources: UploadVR.