Studio Rec Room has announced a significant reduction in its workforce, laying off approximately half of its development team. In a heartfelt message shared on the company’s website, Cameron Brown, the Chief Creative Officer and co-founder, explained that this difficult decision stemmed from the company’s current financial trajectory.
Refocusing Efforts
Brown emphasized that the layoffs are not a reflection of the capabilities or contributions of those affected. The company is committed to providing support to those who are departing. Rec Room, known for its innovative MMO and user-generated content platform, is now shifting its focus to its PC and VR editions, which have shown the highest levels of user engagement.
In December 2021, Rec Room successfully raised 5 million in funding, achieving a valuation of .5 billion. However, Brown candidly acknowledged that the strategies employed over the past few years did not align with the needs of the team, the company, or its players. He stated, “That’s on Nick and me. It’s our job to align those needs, and we failed.”
A Chance to Reset
In his message, Brown expressed the emotional weight of the day, stating, “Today sucks. For Nick and myself. For everyone who remains at Rec Room. And especially for those we are parting ways with.” He conveyed deep regret over the loss of talented individuals who have dedicated themselves to the company’s vision.
Brown urged industry peers to consider the remarkable talent of those being let go, stating, “If you’re in the industry – please take a look at the amazing people on our RIF list. They are some of the most talented developers, builders, and teammates we’ve ever worked with. We truly wish we could keep them all. You’d be lucky to have any of them on your team.”
This restructuring, while challenging, presents an opportunity for Rec Room to recalibrate and pursue a more sustainable path forward, as it seeks to better align its operations with the evolving landscape of the gaming industry.
