UK VR specialist nDreams has announced a wide-ranging restructuring that will include a “significant reduction in overall staffing levels” and the closure of two of its internal studios. A consultation process was started with staff today.
In a statement posted to LinkedIn, the firm said that layoffs would impact all levels, “including senior leadership”.
The studios marked for closure are Brighton-based Near Light, which the firm acquired in 2022, and Compass, a 40-strong team created last year following the closure of two other studios in 2024. A total of 78 roles are at risk.
The restructured business will be focused on the Elevation studio, which will retain “around 120 staff working on unannounced projects”, the company said, alongside “a lean group dedicated to XR R&D”.
“Today’s announcement to restructure nDreams has been extremely painful and a decision we fought hard to avoid,” nDreams’ CEO Tom Gillo said in a statement.
“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.”
The firm said it was “committed to exploring every option to retain talent.”
The 2024 closures placed 17.5% of the firm at risk of redundancy, the firm said at the time, attributing the changes to a “challenging VR games market.” nDreams founder Patrick O’Luanaigh left the CEO role last year after 19 years leading the studio. nDreams was acquired by Aonic in 2023.
The news is the latest blow to the VR industry, after Meta closed Twisted Pixel, Sanzaru and Armature in January as part of its reduction in VR investment.
Last month the company, which remains the major force in VR, announced that it was pivoting its Horizon Worlds metaverse platform to mobile and away from VR, while saying it “focused on supporting the third-party developer community and sustaining our VR investment over the long term.”