Schell Games, the studio best known for co‑creating the three‑dimensional version of the viral hit Among Us and for the critically acclaimed I Expect You to Die series, is reportedly undergoing its first round of staff reductions. The news emerged after several employees posted about the layoffs on LinkedIn, a development that has been covered by Game Developer magazine. The initial reports point to a wave of dismissals that began on a Friday, with the studio’s principal engineering manager taking to the professional network to confirm the situation. In his post, the manager clarified that while he himself was not among those let go, the company had initiated its inaugural layoff.

He emphasized that the cuts were not a reflection of personal performance or any individual failing, but rather a symptom of a broader industry crisis. "This has happened not because of anything you did or did not do. Our industry (and beyond) right now is hemorrhaging," he wrote, underscoring the systemic pressures affecting game developers worldwide. Further confirmation came from Dwayne Waite Jr., the studio’s marketing director, who identified members of the marketing team among those affected and listed four specific employees who were departing.

The studio’s senior public relations manager also contributed to the narrative, naming colleagues from the art, design, and visual‑effects divisions who were impacted. When the information from these posts is aggregated, it appears that roughly fourteen individuals have been let go, a significant number given Schell Games’ reported headcount of between 51 and 200 employees on its LinkedIn profile. One of the affected staff members, the senior public relations manager, expressed a mixture of disappointment and pride in a heartfelt LinkedIn update.

"I won’t pretend this isn’t a disappointing way to end this chapter, especially after almost six years," the manager wrote. "But I’m walking away proud of what I accomplished during my time with the company, and I’m grateful for the people I got to build with." This sentiment captures the bittersweet nature of the situation: while the departure is undeniably painful, the departing employee also reflects on the valuable experiences and relationships forged over a substantial tenure.

The layoffs are particularly striking because they run counter to the public stance taken by Schell Games’ founder and chief executive officer, Jesse Schell. In a 2024 interview with GamesIndustry.biz, Schell articulated a philosophy that placed employee security above financial risk. He explained that the studio’s business model deliberately separates monetary uncertainty from the stability of its workforce.

"At the heart of it all is choosing not to put jobs at risk," Schell said. "We’ll put cash at risk when we make a game, but we don’t put jobs at risk. Even if our own IP brings in zero dollars, we still haven’t put any jobs at risk – we still have a path forward where we’ll be able to keep people on.

So, in a lot of ways, it’s a choice." Schell’s remarks suggested a commitment to weathering financial storms without resorting to layoffs, a principle that has resonated with many within the industry as a model for sustainable development practices. However, the recent cuts reveal the difficulty of maintaining that ideal in a market that is currently experiencing a severe downturn. The gaming sector has been grappling with a confluence of challenges: rising development costs, shifting consumer preferences, heightened competition from both established publishers and emerging indie studios, and broader economic headwinds that have constrained discretionary spending.

Industry analysts note that the current environment is characterized by what some have termed a "bleeding" phase, where revenue streams are tightening and many studios are forced to reassess their staffing levels. The pandemic‑driven boom that buoyed many developers in the early 2020s has largely receded, leaving a more cautious landscape.

Companies are now focusing on leaner operations, prioritizing projects with clearer paths to profitability, and, in some cases, consolidating resources through mergers or acquisitions. For Schell Games, a studio that has built a reputation for innovative, narrative‑driven experiences, the decision to cut staff may reflect a strategic pivot toward a smaller, more agile team that can adapt quickly to market demands. It may also be a response to specific financial pressures such as delayed revenue from recent releases, the costs associated with ongoing development cycles, or the need to reallocate resources toward new IPs or technology investments. The impact of the layoffs extends beyond the individuals directly affected.

Colleagues who remain at the studio may experience increased workloads, uncertainty about future stability, and a shift in team dynamics. Moreover, the broader community of developers watching Schell Games’ situation may interpret the cuts as a cautionary signal about the fragility of even well‑established studios in a volatile market. In response to the situation, GamesIndustry.biz has reached out to Schell Games for an official comment, seeking clarification on the factors that led to the layoffs and how the company plans to navigate the ongoing challenges. As of now, no formal statement has been released by the studio, leaving room for speculation and concern among employees, partners, and fans alike.

The episode serves as a stark reminder that even companies with strong creative legacies and clear ethical commitments can be vulnerable to macro‑economic forces. While the layoffs are undoubtedly a setback for those directly involved, they also highlight the importance of resilience, adaptability, and transparent communication within the gaming industry. As Schell Games moves forward, the hope among its community is that the studio will find a sustainable path that honors its founding principles while addressing the harsh realities of today’s market.