nDreams reveals a restructuring plan involving a "significant" reduction in personnel and the closure of two studios
British virtual reality company nDreams has announced a major reorganization that entails reducing its workforce significantly and shutting down two of its studios. Discussions with employees regarding these changes are ongoing.
The company communicated through a LinkedIn post, indicating that job cuts will affect various levels, including senior positions.
The studios that will be shutting down include Near Light in Brighton, which nDreams brought into its fold in 2022, and Compass, a team of 40, formed last year following the closure of two other units in 2024. In total, 78 jobs are at risk.
Following the reorganization, the company will concentrate on its Elevation studio, which will have "around 120 staff" working on undisclosed projects, alongside "a streamlined group" focused on XR research and development.
Tom Gillo, CEO of nDreams, stated, “Today’s announcement to restructure nDreams has been extremely painful and a decision we fought hard to avoid.”
He added, “I’d like to extend my personal thanks to everyone at nDreams. Together we’ve built a fantastic culture and delivered some stand-out VR games that have helped to push the medium forward over the past decade."
“That we have been unable to avert today’s decision is deeply frustrating. Whilst the current market presents undeniable commercial challenges, I still believe in the mission, and the medium. My hope is that today’s proposals will enable nDreams to continue its pioneering journey, developing innovative, VR-first, high-quality games and XR experiences for many years to come.”
nDreams is exploring all possible avenues to retain its talent, the company said.
The company previously reported that its 2024 restructuring affected 17.5% of its workforce, attributing this to difficulties in the VR gaming market. Last year, Patrick O'Luanaigh, who founded nDreams, stepped down as CEO after nearly two decades leading the company. In 2023, nDreams was acquired by Aonic.
This development adds to the series of challenges confronting the VR sector. Earlier this year, Meta closed three VR studios in January after slashing investments in their Reality Labs division.
In recent updates, the leading VR player has announced a shift of focus for its Horizon Worlds platform towards mobile use rather than VR, while committing to support third-party developers and maintain investments in VR over time.