Virtual reality studio nDreams is making a series of layoffs that could impact 17.5% of its employees.
The company said that “a challenging VR gaming market” requires a “renewed strategic focus” that will involve job cuts.
The British company operates four studios and is known for working on titles such as Far Cry VR, Fractured, Phantom: Covert OperationsAND SynapsesAccording to nDreams’ website, it currently employs over 250 people in a variety of hybrid and fully remote roles.
The downsizing comes less than a year after nDreams was purchased by Swedish conglomerate Aonic for $110 million in what has been described as a “historic” agreement.
In a statement sent to Game Developer, nDreams CEO Patrick O'Luanaigh said the layoffs are made with “deep regret” and noted that roles could be reduced at all levels “including senior management.”
“We are working tirelessly to support our team with the respect and attention they deserve during this difficult process, including all of our efforts to fully assist those whose positions may be impacted by the transition to new roles within nDreams or elsewhere,” he added.
“Having been fully focused on VR development since 2013, we have inevitably faced many challenges in transforming a modest independent studio into a world-leading VR game developer working to push both the technology and the market forward. These necessary considerations of losing valued team members are the most difficult yet, but our belief in XR gaming has not diminished.”
O’Luanaigh said he “firmly believes” the company’s proposed new structure will allow it to “better serve current and future audiences in creating titles that define the medium for years to come.”
He added that the titles in development Frenzy AND Revenge Forever will not be affected by the layoffs.
The news of further layoffs is unwelcome but not surprising. Layoffs, studio closures and project cancellations have has dominated the news cycle this yearwith big players like Microsoft, Sony, EA, Embracer, Take-Two and others cutting jobs in the name of concepts like sustainable growth and shareholder value.