Schell Games Lays Off 49 Employees in Second 2026 Cut

Schell Games confirmed on October 30, 2026, that it laid off 49 employees in across-the-board cuts. The reduction represents about 40% of its workforce. The Pittsburgh studio said difficult conditions across the games industry made the decision necessary to secure a sustainable future.

The company described the layoffs as “incredibly painful” because it was losing talented employees. Cuts affected roles across the studio, but Schell Games did not publish a department-by-department breakdown or identify any cancelled games.

Second 2026 cut follows August layoffs

This was Schell Games’ second reported layoff round in 2026. An earlier round took place in August and reduced staff by approximately 10%. Founder and CEO Jesse Schell said that cut left about 125 employees and was the first layoff in the studio’s 24-year history.

During the August announcement, Schell said the company was shifting from a smaller number of larger titles toward a greater number of smaller projects. That change required a different balance of team members. Based on the reported figures, about 75 employees may have remained after the latest cuts, although the studio did not provide an exact post-layoff headcount.

Reportedly affected positions included Unity and Unreal Engine engineers, game artists, game designers, sound designers, producers, game marketers, IT support specialists, educational game researchers, quality assurance specialists and product managers. Schell Games asked potential employers to contact its careers team about affected staff, whose experience spans engineering, art, design, production, sound, marketing and quality assurance.

VR remains part of Schell Games’ work

Schell Games develops games and interactive experiences for clients alongside its own projects. Its VR catalogue includes the I Expect You To Die trilogy, Until You Fall, Silent Slayer: Vault of the Vampire and Among Us 3D.

Among Us 3D was previously known as Among Us VR before adding flatscreen support. Production later returned to original developer Innersloth earlier in the year. Schell Games also developed Project Freefall, a free-to-play party game supporting both VR and flatscreen play.

Jesse Schell said VR remained meaningful to the studio. Headset-based VR had once represented 80% of its work, but accounted for about 30% when he discussed the August layoffs. At that point, the studio was working on a new VR title and had proposals for several others.

The studio was also taking on VR-adjacent projects, including interactive projection for location-based entertainment. Its work associated with VR and interactive experiences includes the I Expect You To Die series, Until You Fall, Silent Slayer: Vault of the Vampire and the Among Us adaptation.

Dragon Grove window remains unconfirmed after layoffs

Schell Games’ announced upcoming project is Dragon Grove, a free-to-play cozy 3D spatial puzzle game developed for Meta. Announced at Meta Connect 2026, it is intended to launch exclusively on Meta Quest devices in Spring 2027. Reports also describe support for Quest 3/3S and Meta VR Glasses.

Players take the role of Grovekeepers and work with magical dragon companions to restore garden groves. Native hand-tracking replaces controllers, letting players reach out to pet, wave to and cradle dragons, then match leaves and flowers directly with their hands.

The game features 30 distinct grove environments and more than 200 levels. Its spatial plant-matching puzzles introduce new plant types, layers and spatial mechanics as difficulty increases. Planned features include daily streak rewards, magical charms, new dragons and friend-progress tracking.

Coins earned or purchased in the game can be used to give dragons hats, accessories and gameplay abilities. Dragon Grove is designed for relaxed, low-stress sessions, with players solving puzzles at their own pace.

The project announcement predates the latest layoffs. Schell Games has not said whether the cuts changed Dragon Grove’s plans, and it has not announced cancelled games. Spring 2027 is the previously announced release window, not a new post-layoff confirmation.