adminCloudhead Games layoffs will affect 70% of the Canadian virtual reality studio’s workforce, according to a statement from CEO and CCO Denny Unger. The company attributed the decision to a broader downturn in gaming and limited funding for VR platforms.
Image credit: Cloudhead Games
Cloudhead Games layoffs: What the studio announced
In a LinkedIn statement, Unger said the workforce reduction would take effect on January 7. He described the move as a response to industry conditions outside the studio’s control. The statement did not specify how many employees would be affected in total.
Unger pointed to the gaming industry’s general slowdown and the continuing challenges facing VR, including a lack of platform funding. He said the combination had left the studio in a difficult position, despite efforts to reinvest in its team and the future of virtual reality following earlier successes.
For employees affected by a layoff, a practical first step is to update a résumé and portfolio, then check professional networks and relevant industry communities for new openings. Unger said he would support departing staff and shared a reverse-recruiting resource intended to help connect them with potential job opportunities.
Cloudhead Games says it remains committed to VR
Unger described Cloudhead Games as a studio that has navigated challenges throughout its 14 years in virtual reality. He said the company continues to believe VR can become a meaningful medium and that its work will remain focused on finding compelling reasons for people to use it.
He also said he planned to share more about the industry’s difficulties and possible opportunities in a future update. In the meantime, he asked people to support the former employees as they look for their next roles.
For readers following the VR sector, the announcement highlights how studio employment can be affected by both wider game-industry conditions and investment in platform ecosystems. Funding availability can influence a company’s ability to develop new projects and maintain its team, though the statement did not detail any specific funding negotiations or future production plans.
Cloudhead Games background
Denny Unger and Tracey Unger co-founded Cloudhead Games in 2012. The studio’s most recent title, Pistol Whip, launched in 2019.
The Cloudhead Games layoffs mark a major workforce reduction for the studio, while its leadership says it still believes in VR’s long-term potential. The company has not provided further details about the employees affected or outlined specific plans for its next projects.
