TL;DR
Schell Games has confirmed layoffs affecting several departments, marking the company’s first in its 20+ year history. The move reflects broader industry challenges faced by VR and game development studios in 2026.
Schell Games, the veteran studio known for Among Us 3D and the I Expect You To Die series, has confirmed its first layoffs in more than 20 years. The cuts, announced late last week, affected multiple departments including marketing, art, design, and visual effects, and are part of a broader trend of industry-wide layoffs in 2026.
Several employees at Schell Games posted on social media that layoffs had taken place, with one noting that the cuts were not due to individual performance but were driven by broader industry challenges. The company has not publicly disclosed the exact number of employees affected, but sources indicate multiple staff across various departments were impacted.
Jesse Schell, CEO and founder of Schell Games, has historically emphasized a company philosophy that avoids layoffs. In a 2024 interview with GamesIndustry, Schell stated, “At the heart of it all is choosing not to put jobs at risk. We’ll put cash at risk when we make a game, but we don’t put jobs at risk.” However, the current layoffs suggest a shift, likely influenced by economic pressures and industry downturns.
Schell Games’ most recent major project was Among Us VR, which was later ported to flat-screen as Among Us 3D and handed over to Innersloth. Aside from this, the studio has developed titles like Silent Slayer: Vault of the Vampire, Project Freefall, and the I Expect You To Die series, along with work in XR for location-based entertainment and education.
Industry analysts note that the layoffs at Schell Games are part of a larger pattern affecting VR and game development studios in 2026, including companies such as Polyarc Games, Mighty Coconut, Kluge Interactive, and nDreams, all of whom have announced or implemented layoffs recently.
Among Us 3D Developer Schell Games Confirms Layoffs
The veteran studio behind Among Us VR and the I Expect You To Die series has confirmed its first layoffs in more than 20 years, affecting marketing, art, design, and visual effects — part of a broader wave of industry-wide cuts in 2026.
Departments Hit Across the Studio
Marketing
Multiple employees in marketing roles confirmed their departure on social media following the announcement.
Art
Art department staff were among those cut, with sources indicating impact across several teams.
Design
Design roles were affected despite recent titles being generally well-received by players and critics.
Visual Effects
VFX staff reductions round out a multi-department workforce reduction — the studio’s first ever.
Two Statements, Two Eras
This has happened not because of anything you did or did not do. Our industry (and beyond) right now is hemorrhaging.
At the heart of it all is choosing not to put jobs at risk. We’ll put cash at risk when we make a game, but we don’t put jobs at risk.
Schell Games’ Recent Projects
| Project | Type | Status | Reception |
|---|---|---|---|
| Among Us VR / Among Us 3D | VR → flat-screen port | Handed to Innersloth | Well-received |
| I Expect You To Die series | VR puzzle/espionage | Flagship franchise | Critically acclaimed |
| Silent Slayer: Vault of the Vampire | VR title | Released | Well-received |
| Project Freefall | VR title | In development | ~ Impact unclear |
| XR for LBE & education | Location-based / educational XR | Ongoing | ~ Impact unclear |
VR Studios Cutting Staff in 2026
How This Unfolds From Here
📋 Internal Review
Schell Games evaluates staffing levels and its project pipeline in the coming weeks.
🎯 Strategic Adjustment
Potential shifts toward new titles, strategic partnerships, or restructured focus areas.
📢 Clarification
Company may disclose the scope of layoffs and any rehiring or restructuring plans.
📈 Industry Watch
Analysts monitor whether other VR studios follow suit amid market contraction.
The Open Questions
How many employees were affected?
The exact number has not been publicly disclosed. Multiple sources indicate several employees across departments were impacted, but no official figure has been confirmed.
Were the layoffs tied to Among Us 3D’s performance?
No. The layoffs are attributed to broader industry challenges rather than specific product performance. Recent titles have generally been well-received.
Will future VR projects be affected?
It remains uncertain. The company has not provided detailed information about ongoing or upcoming projects, and further announcements are awaited.
Is this a sign of trouble for the VR industry?
The layoffs reflect broader economic and market challenges faced by VR developers in 2026. While not necessarily industry-wide failure, they highlight ongoing financial pressures in the sector.
Implications for Schell Games and VR Industry
The layoffs mark a significant shift for Schell Games, which has historically prioritized job security and stable growth. This move signals potential financial or strategic challenges within the studio, and reflects broader economic pressures impacting the VR and gaming sectors in 2026. The layoffs could influence ongoing projects, including future VR titles, and may affect the studio’s reputation among industry peers and consumers.
For the VR industry, this development underscores the ongoing financial hurdles faced by developers in a competitive and rapidly evolving market. The layoffs highlight the fragility of even established studios amid shifting consumer interest, platform changes, and economic uncertainty.
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Industry-Wide Challenges in 2026
Schell Games’ layoffs are part of a broader pattern affecting multiple VR and game development studios in 2026. Companies such as Polyarc, Kluge Interactive, and nDreams have also announced layoffs or scaled back operations, citing economic pressures, market saturation, and the high costs associated with VR development.
Historically, VR studios have faced financial instability due to the niche market size, high development costs, and fluctuating consumer demand. The recent layoffs reflect these ongoing challenges, compounded by broader economic factors impacting the tech and entertainment sectors.
While Schell Games has maintained a relatively stable employment record, the current economic environment appears to be forcing even long-standing developers to make difficult staffing decisions, marking a potential shift in industry resilience and business models.
“This has happened not because of anything you did or did not do. Our industry (and beyond) right now is hemorrhaging.”
— an anonymous employee
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Unclear Impact on Future Projects
It is not yet clear how these layoffs will affect Schell Games’ upcoming projects or long-term strategic plans. The company has not issued detailed statements regarding future development pipelines or potential restructuring, and the full scope of the layoffs remains undisclosed.
It is also uncertain whether the layoffs will lead to further staff reductions or if they are a one-time adjustment in response to current economic conditions. The extent to which the company will recover or adapt in the coming months is still unknown.
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Next Steps for Schell Games and Industry Recovery
Schell Games is expected to evaluate its staffing and project pipeline in the coming weeks, potentially adjusting its focus on new titles or strategic partnerships. The company may also clarify the scope of layoffs and any plans for rehiring or restructuring.
Industry analysts will monitor whether other VR and game studios follow suit with further layoffs or strategic shifts. The broader VR market’s recovery or continued contraction will influence the studio’s future direction and the overall health of the sector.
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Key Questions
How many employees were affected by the layoffs at Schell Games?
The exact number has not been publicly disclosed. Multiple sources indicate that several employees across departments were impacted, but no official figure has been confirmed.
Did Schell Games announce any new projects following the layoffs?
No, the company has not announced any new projects or strategic plans publicly at this time. Details about future development are still unclear.
No, the layoffs are attributed to broader industry challenges rather than specific product performance. Schell Games’ recent titles have generally been well-received, but economic pressures seem to be the primary factor.
Will the layoffs affect Schell Games’ ongoing or future VR projects?
It remains uncertain how the layoffs will impact ongoing or upcoming projects. The company has not provided detailed information, and further announcements are awaited.
Is this a sign of trouble for the VR industry as a whole?
The layoffs at Schell Games reflect broader economic and market challenges faced by VR developers in 2026. While not necessarily indicative of industry-wide failure, they highlight ongoing financial pressures in the sector.
Source: UploadVR
