Studio Rec Room is laying off "roughly half" of its development team. 

In a post on its website, the company's CCO and co-founder Cameron Brown wrote that it had had to take this measure as a result of its "financial trajectory". They added that it is not a reflection on those who are being made redundant and that Rec Room would be doing what it could to support those affected. 

Rec Room is the developer of the MMO slash UGC platform of the same name. The firm has opted to focus on its PC and VR editions as these are where it sees the most engagement. 

In December 2021, the company attracted $145 million in investment at a valuation of $3.5 billion. 

"The reality is that what we’ve been doing these past few years wasn’t working for the team, for the company or for our players," Brown wrote.  

"That’s on Nick and me. It’s our job to align those needs, and we failed. This change, however imperfect, and however shocking, gives a chance to reset and correct our course.

"Today sucks. For Nick and myself. For everyone who remains at Rec Room. And especially for those we are parting ways with. We hate that it came to this. We hate letting go of so many talented people who worked so hard. And we hate stepping away from a huge vision we strongly believed in.

"If you’re in industry - please take a look at the amazing people on our RIF list. They are some of the most talented developers, builders and teammates we’ve ever worked with. We truly wish we could keep them all. You’d be lucky to have any of them on your team."