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Schell Games said on Oct. 30 that it had laid off a significant number of employees, marking its second round of cuts in 2026. The studio said the decision was intended to support its long-term stability, but it did not disclose how many staff were affected.
Schell Games laid off a significant number of employees on October 30, the studio said, marking its second round of job cuts in 2026. The Pittsburgh-based VR developer said the reductions were necessary to support a sustainable future for the studio, but did not specify how many employees were let go.
The news first surfaced in a Bluesky post by Kyle Hilliard, whose wife, Schell Games employee Ashley Godbold, was among those affected. Hilliard said the studio had cut a “large portion” of its staff and asked people looking to hire developers to follow a thread where affected workers could share their information. That description is his account; Schell Games has not published a headcount or a list of the roles eliminated.
Schell Games later confirmed the layoffs in a statement on LinkedIn. The studio said that “due to this challenging time in the game industry,” it had found it necessary to lay off a significant number of employees. It said the cuts would help it remain stable, while adding that losing employees was “incredibly painful.” The company did not give a specific reason beyond the broader industry conditions it cited.
The October cuts follow an earlier round announced in August 2026. The available information does not establish how the two rounds compare in size, or whether they affected the same teams. The studio has also not stated how many employees remain, which departments were affected, or whether further reductions are planned.
Studio update · Pittsburgh, Pennsylvania
Schell Games Lays Off “Large Portion” of Staff
The studio confirmed a second round of job cuts in 2026, citing challenging conditions across the game industry. The number of employees affected remains undisclosed.
01 / What is confirmed
Known facts, open questions
Schell Games confirmed significant staff reductions, but it has not published a headcount or explained the cuts in detail.
Second reduction
The October announcement follows an earlier round in August 2026. The studio has not said how the rounds compare in size.
Scale and scope
The company did not name the number of employees affected, the teams involved, or how many employees remain.
Industry conditions
The studio cited a challenging time for the game industry and said the cuts were intended to support long-term stability.
02 / Timeline
A second cutback this year
The available reporting establishes two rounds in 2026, but does not show whether the same teams were affected.
August 2026
An earlier round of layoffs was reported. No directly comparable headcount is available.
October 30, 2026
Kyle Hilliard posted that a “large portion” of staff had been cut. That wording was his account.
Studio confirmation
Schell Games confirmed the reductions on LinkedIn, describing the affected group as “significant.”
03 / Projects in view
What happens to development?
The studio has not announced cancellations, schedule changes, or project impacts following the staff reductions.
04 / What to watch
Information still pending
Further updates could clarify the scale of the layoffs and what they mean for employees, projects, and studio plans.
Headcount and teams
No total, affected departments, or remaining staff count has been made public.
Project schedules
No changes have been announced for active projects, including Dragon Grove’s expected spring 2027 window.
Studio plans
Schell Games has not said whether further reductions are planned or described additional steps toward stability.
05 / Key questions
Quick answers
How many employees were laid off?
The number is unknown. Schell Games said “a significant number”; Kyle Hilliard described it as a “large portion.”
When were the cuts announced?
October 30, 2026. Hilliard said the layoffs happened that day, and the studio later confirmed them on LinkedIn.
Was this the first round in 2026?
No. An earlier round took place in August. The studio has not compared their scale.
Will Dragon Grove be delayed?
No delay has been announced. Its expected spring 2027 window remains the latest reported milestone.
Cuts Put Studio Plans in Focus
The layoffs affect a developer with several established VR and games projects, including the I Expect You To Die series, Among Us 3D, Silent Slayer: Vault of the Vampire and Project Freefall. The immediate effect for employees is clear: a substantial but undisclosed number have lost their jobs. The effect on individual projects, release schedules and studio capacity has not been announced.
The cuts also come amid a difficult period for VR development teams. The reported industry-wide layoffs and closures offer relevant context, but do not establish that every studio faced the same business conditions or that those events caused Schell Games’ decision. For players and partners, the key near-term question is whether the staff reductions will alter work on games already announced or in development.
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A Second Reduction This Year
Schell Games’ October announcement was its second reported layoff round in 2026. The first took place in August. At that time, an employee described the cuts as a response to an industry “hemorrhaging”; that wording was the employee’s characterization, not a detailed explanation from the studio. Schell Games has now again pointed to challenging conditions across the game industry, without offering financial figures or further detail about its decision.
The VR sector has seen other workforce reductions and studio closures during 2026. The developments cited alongside Schell’s announcement include layoffs at Mighty Coconut, Kluge Interactive, Survios, Camouflaj and Combat Waffle, as well as closures involving Sanzaru Games, Twisted Pixel, Armature, Polyarc Games, Vertigo Games Amsterdam and studios within nDreams. These examples describe a wider pattern of industry contraction, but the circumstances and outcomes for each company differ.
Schell Games is 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. The studio has not said whether the layoffs change that release expectation.
““We’re 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.””
— Schell Games, in a LinkedIn statement
Headcount and Project Effects
The number of employees affected remains unknown. Schell Games has used the phrase “a significant number” but has not provided a total, named the teams involved or said how many positions remain at the studio. Hilliard’s description of a “large portion” is not a company-published headcount.
It is also unclear whether the layoffs will affect development plans, including the expected spring 2027 release of Dragon Grove, or any of the studio’s other projects. Schell Games has not announced schedule changes, project cancellations or plans for additional cuts. The company’s statement about seeking stability does not, on its own, confirm what staffing or financial steps may follow.
Watch for Studio Updates
The next concrete information would be a Schell Games update on the scale and scope of the reductions, any changes to active projects, or the studio’s staffing plans. Employees affected by the cuts may also share information about their experience and availability for work; Hilliard’s post invited hiring contacts to follow that discussion.
For now, the studio’s stated position is that the layoffs are intended to help it remain stable. The expected spring 2027 launch window for Dragon Grove remains the project milestone identified in the available announcement, with no reported revision. That timing could change, but no such change has been confirmed.
Source: UploadVR
Key Questions
How many Schell Games employees were laid off?
Schell Games has not disclosed a number. Its statement describes the group as a “significant number” of employees, while Kyle Hilliard called it a “large portion” of staff.
When did the layoffs happen?
The cuts were announced on October 30, 2026. Hilliard’s Bluesky post said the layoffs happened that day, and Schell Games later confirmed them on LinkedIn.
Is this Schell Games’ first round of layoffs in 2026?
No. The October announcement follows an earlier round in August 2026. The company has not said how the two rounds compare in size.
Will the layoffs delay Dragon Grove?
No delay has been announced. The game is still expected to launch in spring 2027 for Meta VR Glasses and Quest 3, though the studio has not directly addressed whether the cuts affect development.
Source: UploadVR
