Cloudhead Games cuts 70% of its workforce

The Canadian virtual reality developer, Cloudhead Games, is reducing its workforce by 70%.

CEO and Chief Creative Officer Denny Unger explained on LinkedIn that the layoffs are scheduled to take place tomorrow, January 7, attributing them to unavoidable industry conditions.

Unger cited the overall decline in the gaming sector and persistent hurdles within the VR market, such as insufficient platform funding, as key reasons for the downsizing.

"We've consistently aimed to channel past achievements back into our team and VR's advancement, but developing on a larger scale requires more support," noted Unger.

He remarked, "Throughout our 14-year journey in VR, Cloudhead has navigated numerous challenges. We remain committed to the transformative potential of VR. Our focus continues to be discovering 'the reason' for VR's use, a pursuit we will maintain as long as possible."

Denny Unger also conveyed his backing for those impacted by the layoffs and mentioned a "reverse recruiting" initiative to assist in finding new job prospects.

"I'll provide further insights into our industry's challenges and prospects in a forthcoming update," added Unger.

"Meanwhile, we ask for support for our talented departing team members as they seek new opportunities."

Cloudhead Games, co-founded by Denny and Tracey Unger in 2012, released its latest game, Pistol Whip, in 2019.