“Roughly half” of the team at social gaming platform Rec Room has been laid off.
CCO Cameron Brown said he and co-founder and CEO Nick Fajt had “made the difficult decision to lay off roughly half the Rec Room team,” stressing the layoffs were no reflection on the work of those individuals – described as “amongst the most talented people we’ve worked with in the industry” – and that they were “looking after those impacted as best we can.”
“Today Nick and I had to make one of the toughest choices in Rec Room history: We’re saying goodbye to about half the Rec Room team,” Brown wrote in a statement posted to the company’s blog (thanks, GameDeveloper).
“These are incredible people who have poured their talent, heart, and creativity into this company. They shaped our culture, built features loved by millions, and made Rec Room better in so many ways it’s impossible to count. We are heartbroken to see them go – this is a painful day for a lot of people.
“Rec Room is more than a game, and more than a company. It’s a community, and it’s one of the best teams we’ve ever had the privilege to work with. That only makes this moment harder. This is not a reflection on the talent or dedication of those departing – we wish we could keep every one of them. I’m gonna say that again, to make it clear this isn’t just ‘one of those things you say in a layoff message.’ We TRULY wish we could keep every one of these people on the team. But we can’t. This is a reflection of the tough reality we face as a business and the change needed to give Rec Room a chance to thrive in the years ahead.”
The statement adds that “this decision affects people we consider colleagues and friends,” people who “built Rec Room line-by-line, asset-by-asset, test-by-test.”
“This is not the outcome any of us hoped for, and Nick and I take full responsibility for the position we’re in.” The statement then details that affected staff will be paid for the next three months, and provided with health benefits for the next six months. They will also get to keep their laptop or desktops as “a computer is an important tool to find new work.”
“We invested heavily in creation tools across PC, VR, consoles, and mobile,” the statement added. “But the reality has been harsh. The most impactful creation comes almost entirely from creators on PC (using mouse and keyboard, and Studio) and VR.
“The reality is that what we’ve been doing these past few years wasn’t working for the team, for the company or for our players. That’s on Nick and me. It’s our job to align those needs, and we failed. This change, however imperfect, and however shocking, gives a chance to reset and correct our course.
“Today sucks. For Nick and myself. For everyone who remains at Rec Room. And especially for those we are parting ways with. We hate that it came to this. We hate letting go of so many talented people who worked so hard. And we hate stepping away from a huge vision we strongly believed in.”
Rec Room Inc. was founded in Seattle, Washington, in April 2016 by “a small team with a shared passion for VR, AR, social, and multiplayer experiences.” In December 2021, Rec Room raised $145 million in a funding round, bringing its total valuation to $3.5 billion, and, as spotted by Game Developer, Fajt announced that Rec Room hit a “record-breaking month.”