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, has reportedly initiated a round of staff reductions. The news emerged after several employees posted about the layoffs on LinkedIn, prompting coverage by Game Developer. According to those posts, the first wave of cuts began on a Friday and was described by the studio’s principal engineering manager as the company’s "first ever layoffs." The manager clarified that they themselves were not among those let go, emphasizing that the decision was not tied to any personal performance issues. "This isn’t a result of any individual's actions.

Our sector is currently bleeding heavily," the manager wrote, underscoring the broader challenges facing the gaming industry and related markets. The marketing department was also hit, as confirmed by marketing director Dwayne Waite Jr., who identified four members of his team who were affected. Further details emerged from the senior public relations manager, who listed additional names from the art, design, and visual‑effects divisions.

When all the reports are combined, it appears that roughly fourteen employees have been impacted by the cuts. Schell Games’ LinkedIn profile lists its headcount as ranging between 51 and 200 staff members, suggesting that the layoffs represent a modest but still significant percentage of the workforce. One of the affected employees, the senior public relations manager, posted a reflective note about the experience.

"I won’t pretend this isn’t a disappointing way to end this chapter, especially after almost six years," they 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." The sentiment captures both the sorrow of an unexpected departure and the gratitude for the collaborative achievements made during their tenure. The layoffs are particularly striking given the public stance of Schell Games’ founder and chief executive officer, Jesse Schell, who has long spoken against job cuts.

In a 2024 interview with GamesIndustry.biz, Schell articulated a philosophy that separates financial risk from the risk to employees. He explained, "At the heart of it all is choosing not to put jobs at risk.

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 comments suggest a commitment to preserving staff even in financially tight periods, making the recent reductions appear contradictory. The gaming industry as a whole has been experiencing a downturn, with many studios reporting revenue shortfalls, delayed releases, and shifting consumer preferences toward live‑service models and subscription platforms.

This macro‑economic pressure has forced even well‑established developers to reassess budgets, staffing levels, and project scopes. Industry analysts point out that the current climate is characterized by what some call a "post‑pandemic correction," where the surge in game development and publishing activity during the COVID‑19 years has given way to a more cautious, cost‑focused approach. Companies are trimming overhead, postponing ambitious projects, and in some cases, consolidating studios.

The phrase "our industry is hemorrhaging" reflects a sentiment echoed across multiple quarters, as publishers grapple with rising production costs, higher expectations for content updates, and the need to invest heavily in marketing to cut through a crowded marketplace. For Schell Games, the decision to lay off staff may also be tied to specific project pipelines. While the studio has enjoyed success with immersive VR titles like I Expect You To Die, the market for high‑quality virtual‑reality experiences remains niche compared with mainstream console and mobile gaming. Development cycles for VR games can be longer and more resource‑intensive, and the revenue generated may not always keep pace with the investment required.

Consequently, the company may be reallocating resources to ensure long‑term sustainability, perhaps focusing on fewer, higher‑impact projects or exploring new partnership models. The impact on morale cannot be understated. Employees who remain at Schell Games may experience a mix of anxiety and renewed determination. On one hand, the loss of colleagues can create gaps in expertise and increase workloads; on the other, it can galvanize the remaining team to double‑down on the studio’s creative vision.

Leadership will need to communicate transparently about the path forward, outlining how the company plans to navigate the current market turbulence while honoring the commitments made to its workforce. In response to the reports, GamesIndustry.biz has reached out to Schell Games for comment, seeking clarification on the rationale behind the layoffs and how they align with the CEO’s previously stated philosophy. As of now, no official statement from the studio has been released beyond the employee‑generated LinkedIn posts.

Overall, the situation at Schell Games serves as a microcosm of the broader challenges confronting the gaming sector. While the studio’s legacy of innovative gameplay and immersive storytelling remains intact, the financial realities of a rapidly evolving industry demand difficult choices.

For the fourteen individuals who have been let go, the transition may be bittersweet, but many expressed pride in their contributions and optimism about future opportunities. For the remaining staff and leadership, the focus will likely shift to stabilizing operations, refining project priorities, and finding ways to sustain the creative momentum that has defined Schell Games since its inception.