Schell Games has announced its second round of layoffs in 2026, citing difficult conditions across the video game industry and the need to maintain the studio’s long-term stability.
The Pittsburgh-based developer said the cuts affect roles across engineering, art and design, sound, marketing, IT support, research and quality assurance. Schell Games did not disclose how many employees were affected.
“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
The studio said the reductions would allow it to remain stable, while also acknowledging the impact on the employees leaving the company. Schell Games is known for the virtual reality puzzle series I Expect You To Die and for co-developing the VR adaptation of Among Us. It also creates educational virtual reality experiences.
Second reduction this year
Schell Games carried out its first staff reduction since its founding in 2002 in August. The latest announcement marks a second workforce reduction in the same year, with affected departments spanning development, production support and business operations.
- Engineering, art and design teams are affected.
- Sound, research and quality assurance roles are included.
- Marketing and IT support positions are also affected.
CEO Jesse Schell has previously discussed the company’s approach to staffing and financial planning. In an interview with GamesIndustry.biz in 2024, he said avoiding layoffs depended on making stability a priority over time. Schell also described layoffs as a broader industry pattern that companies can be more likely to undertake during periods when many other studios are reducing staff.
The new cuts follow a difficult period for game developers, particularly studios working on projects with specialized production requirements such as virtual reality. Schell Games’ announcement identifies the reductions as a measure intended to keep the studio operating on a stable basis while it continues its work across VR games and educational experiences.
