Schell Games, the development studio best known for collaborating on the three‑dimensional version of the viral hit Among Us and for creating the critically acclaimed I Expect You To Die series, has reportedly begun a wave of employee layoffs. The news surfaced after a number of staff members posted about the cuts on LinkedIn, a development that was first highlighted by Game Developer magazine.

The first public indication of the downsizing came from the studio’s principal engineering manager, who posted on LinkedIn that the organization experienced its inaugural round of layoffs on a Friday. The manager clarified that they themselves were not among those let go, and they added a poignant note to explain the circumstances: "This isn’t a result of anything you did or didn’t do. Our industry (and beyond) right now is hemorrhaging." Further confirmation arrived from Dwayne Waite Jr., the studio’s marketing director, who disclosed that the marketing department was among those impacted.

He went on to name four specific individuals who were affected. In a separate post, the senior public‑relations manager at Schell Games expanded the list, identifying colleagues from the art, design, and visual‑effects teams who were also facing termination. Compiling the information from the various LinkedIn updates suggests that roughly fourteen employees have been let go in this round of reductions. This figure is notable when placed against the company’s own LinkedIn profile, which lists its workforce size as ranging between 51 and 200 people.

In other words, the layoffs represent a noticeable percentage of the studio’s total headcount. The public‑relations manager, who also contributed to the disclosure, expressed a mixture of disappointment and pride in a reflective comment: "I won’t pretend this isn’t a disappointing way to end this chapter, especially after almost six years. 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 timing of these layoffs is particularly striking given the public stance that Schell Games’ founder and chief executive officer, Jesse Schell, has taken on the issue of job security.

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 have been widely cited as an example of a studio that prioritizes staff stability, even in the face of uncertain market conditions. The recent layoffs, therefore, appear to contradict that earlier commitment, prompting industry observers to wonder whether external pressures have finally forced the studio to abandon its previously stated principles.

The broader context for these cuts is a turbulent gaming market that has been described as "hemorrhaging" by the affected employees themselves. Over the past several years, the industry has faced a confluence of challenges, including rising development costs, shifting consumer preferences toward live‑service models, and a slowdown in consumer spending caused by macro‑economic headwinds. Many mid‑size studios have been forced to tighten budgets, delay projects, or in some cases, shutter entirely. Schell Games, while not a household name like some AAA publishers, occupies a niche that blends educational experiences, immersive VR titles, and narrative‑driven puzzles.

Its portfolio includes collaborations with major brands and institutions, ranging from theme‑park attractions to corporate training simulations. This diversified approach has historically insulated the studio from the boom‑and‑bust cycles that can afflict more single‑focus developers.

Nevertheless, diversification does not guarantee immunity. The company’s reliance on contract work and partnership deals means that any slowdown in client budgets can quickly translate into reduced revenue streams. In addition, the competitive landscape for VR and experiential content has intensified, with larger players entering the space and driving up expectations for production quality and innovation. The layoffs also raise questions about the future direction of Schell Games’ flagship IPs.

The I Expect You To Die series, a spy‑themed puzzle adventure that has enjoyed a dedicated fanbase, has seen multiple releases and expansions over the past few years. Meanwhile, the studio’s involvement in the 3D adaptation of Among Us demonstrated its capability to handle high‑visibility projects. Whether the company will continue to invest in these existing franchises or pivot toward new ventures remains to be seen. Industry analysts suggest that the studio may be recalibrating its resource allocation to focus on projects with the highest potential return on investment, possibly trimming staff in areas deemed non‑essential to immediate revenue generation.

This strategy, while pragmatic, can have a demoralizing effect on the remaining workforce and may impact the studio’s creative output in the short term. GamesIndustry.biz has reached out to Schell Games for an official comment on the layoffs and on how the company plans to reconcile its earlier public commitments with the current reality. As of the time of writing, no response has been received.

In summary, Schell Games, a studio celebrated for its innovative VR experiences and collaborative titles, is navigating a challenging period marked by its first ever staff reductions. While the layoffs affect a relatively small portion of its overall headcount, they underscore the broader financial pressures affecting the gaming sector at large. The situation also highlights a tension between the company’s previously articulated ethos of protecting jobs and the harsh economic environment that appears to be forcing a reconsideration of that stance. The coming weeks will likely reveal how Schell Games adapts its business model, manages its remaining talent, and positions itself for future growth in an industry that continues to evolve rapidly.