adminThe nDreams restructuring will involve a significant reduction in staffing and the planned closure of two internal studios, putting 78 roles at risk. The UK-based virtual reality developer has begun consulting with employees, so the proposed changes do not mean that every at-risk role has already been made redundant.
Image credit: nDreams
nDreams restructuring: studios and roles affected
The studios proposed for closure are Near Light, based in Brighton, and Compass. nDreams acquired Near Light in 2022. Compass was formed last year as a 40-person team after two other studios closed in 2024.
The company says the proposed job reductions could affect employees at every level, including senior leadership. In practical terms, the consultation process is a period in which the company and staff can discuss the proposals and explore possible alternatives. The announcement identifies 78 roles as being at risk, rather than confirming that all 78 positions will be eliminated.
What nDreams plans to retain
Under the proposed structure, the Elevation studio would become the business’s main development team. It is expected to retain around 120 staff working on projects that have not yet been announced. The company also plans to keep a smaller group focused on extended reality (XR) research and development.
CEO Tom Gillo described the decision as painful and said the company had tried to avoid it. He credited nDreams staff with building a strong workplace culture and creating notable VR games over the past decade. Gillo also pointed to difficult commercial conditions in the current market, while reaffirming the company’s intention to develop VR-first games and XR experiences.
What affected employees should know
Because consultations are underway, employees and industry observers should distinguish between proposed changes and final outcomes. Staff seeking clarity can follow official company communications and ask about consultation timelines, selection criteria, alternative roles and available support. The announcement does not provide individual decisions or a final timetable for the process.
Wider pressures on the VR industry
The latest proposals follow further studio closures at nDreams in 2024. At the time, the company said 17.5% of its workforce was at risk of redundancy and cited a challenging market for VR games. Founder Patrick O’Luanaigh left the CEO role last year after leading the studio for 19 years. Aonic acquired nDreams in 2023.
The changes also come amid broader shifts across the VR sector. Meta closed Twisted Pixel, Sanzaru and Armature in January as part of a reduction in its VR investment. The company has also said it is shifting Horizon Worlds toward mobile, while stating that it intends to support third-party developers and maintain long-term investment in VR.
What the nDreams restructuring means
The nDreams restructuring would concentrate development on Elevation and a smaller XR research group, while Near Light and Compass face closure. With 78 roles at risk and staff consultations in progress, the final impact will depend on the outcome of those discussions. The proposals reflect the commercial challenges described by nDreams and form part of a wider period of change for VR developers.
