Rooster Teeth Division to Cease Operations

Warner Bros. Discovery has announced the shutdown of its Rooster Teeth division, resulting in the loss of around 150 full-time jobs, as well as impacting numerous contractors and content creators who will no longer have a source of income from the company. According to a memo from Rooster Teeth general manager Jordan Levin, the decision is attributed to the significant changes in consumer behavior and revenue generation across various platforms, including advertising and patronage. Rooster Teeth was founded 21 years ago with the launch of the comedic web series Red vs. Blue, which was created using the video game Halo. The company had expanded its offerings beyond Red vs. Blue, producing other notable series such as RWBY and gen:Lock, as well as various podcasts, YouTube channels, and film projects. Following its acquisition by Fullscreen in 2014, Rooster Teeth became part of Warner Bros. Discovery in 2022 through a series of media consolidations. Despite its diverse range of content, the company had reportedly been operating at a loss for at least a decade. In recent years, Rooster Teeth has faced several controversies, including the termination of on-camera personalities due to allegations of misconduct and a former employee's account of a culture of harassment and overwork during her nine-year tenure. Levin has downplayed some of these allegations, describing them as past incidents, and characterized the issue of unpaid voiceover work as a job perk rather than a form of exploitation. The Roost podcast network, also owned by Warner Bros. Discovery, will not be affected by the closure of Rooster Teeth, and the company is currently seeking a buyer for the property.