UK studio nDreams confirms layoffs could impact 17.5 percent of workforce

VR studio nDreams is conducting a round of layoffs that could impact 17.5 percent of employees.

The company said a "challenging VR games market" requires a "renewed strategic focus" that will result in job cuts.

The UK firm operates four studios and is known for working on titles like Far Cry VR, Fracked, Phantom: Covert Ops, and Synapse. According to the nDreams website, it currently employs over 250 people across a variety of hybrid and fully-remote roles.

The downsizing comes less than a year after nDreams was purchased by Swedish conglomerate Aonic for $110 million in what was described as a "landmark" deal.

In a statement sent to Game Developer, nDreams CEO Patrick O'Luanaigh said the layoffs are being made with "deep regret" and noted roles could be trimmed at all levels "including senior leadership."

"We are working tirelessly to support our team with the respect and care they deserve throughout this challenging process, including all our efforts to comprehensively assist those whose positions may be impacted to move into new roles within nDreams or elsewhere," he added.

"Having been fully-focused on VR development since 2013, we have inevitably faced many challenges in building a modest independent studio into a world-leading VR game developer working to push both the technology and the market forward. These necessary considerations of losing valued team members are the most difficult yet, but our belief in XR gaming is undimmed."

O'Luanaigh said he "firmly" believes the company's proposed new structure will enable it to "better serve current and future audiences in creating medium-defining titles for years to come."

He added that in-development titles Frenzies and Vendetta Forever won't be affected by the layoffs.

News of more redundancies is unwelcome but unsurprising. Layoffs, studio closures, and project cancellations have dominated the news cycle this year, with major players like Microsoft, Sony, EA, Embracer, Take-Two, and more all cutting jobs in the name of notions like sustainable growth and shareholder value.