VRChat Is Laying Off 30% of Its Staff

VRChat has recently laid off 30% of its staff and promised at least 12 weeks of severance pay to all those affected. Graham Gaylor, CEO of VRChat, alluded to management changes that have put the company in good stead for the coming years. Gaylor referred to the downsizing as "one of the toughest decisions" VRChat has faced in a decade of service.

Initially launched as an application for the now-discontinued Oculus Rift in 2014, VRChat was eventually released on Steam, HTC Vive, Oculus Quest, Android, and PICO 4 in the years following. Created by Graham Gaylor and Jesse Joudrey, VRChat is a platform that allows users to create 3D avatars and interact with one another in user-made environments. The software is designed to run with VR technology, but VRChat also has a desktop mode that allows users to join worlds by using either a mouse and keyboard or a controller.

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The VRChat team shared a statement on Twitter regarding the staggering losses, which seem to continue trending in the gaming community following the recent announcement that Avalanche Studios Group would also be laying off staff. As the statement reads, the founders made a "proactive step towards securing the future success" of the business, while remaining "deeply sorry for the impact this decision will have." In an email sent to VRChat's employees, Gaylor also takes full responsibility, along with Joudrey, for the decisions that drove the company to this point. The email also outlines how VRChat as a whole will be affected and how the departing employees can expect to be compensated for their commitment to the company.

VR Chat Lays off Staff Citing a New Five-Year Plan

Also in the email, Gaylor remains transparent enough to share with readers the factors that contributed to the eventual decision. He chalks the layoffs up to a prolonged search for product and people management, an over-hiring of ICs, needing more time to execute improvements to VRChat within the company's five-year plan, and the need for new developmental roles and expertise for the next leg of the company's journey. Given VRChat's controversial history, the top brass may see layoffs as a necessary evil for the company's growth. To determine which employees would be let go, Gaylor and Joudrey analyzed the skills of their workforce to assess if they aligned with the company's future aspirations. It was made clear that "these decisions are not a reflection of the quality of the team members who are leaving, but rather one of a changing business and market."

In the coming weeks, any employees who were dismissed will receive 12 weeks of severance pay, up to six months of healthcare for those eligible, career support to connect departing team members to other companies, a lifetime subscription to VRChat Plus, and many more incentives. Once VRChat has rolled out its badging system, any current and former members of the team will receive an Alumni Badge on their profile, signifying their dedication to the company, and will also boast VIP status within servers. Thankfully, VRChat wasn't in the same predicament as Deliver Us Mars developer KeokeN Interactive being forced to lay off its entire staff.

Moving forward, VRChat hopes to prioritize management, avoid overhiring, dedicate more time to perfecting the platform, and alter specific roles to accommodate VRChat's future. Gaylor and Joudrey have wished all the best to their former colleagues in their future endeavors, but it's a bittersweet farewell for the remaining employees, who are anticipating what the future holds. Hopefully, the trend of big studios laying off employees will soon come to an end.