Schell Games layoffs and AI

Not according to Schell Games. It named no AI reason for its October 2026 cut, citing a challenging time in the games industry, to keep the studio on a sustainable footing. No credible outlet or named analyst linked the cut to AI, so it is not in the register of AI-linked job cuts.

Schell Games, the Pittsburgh studio behind the I Expect You To Die virtual reality games, laid off 49 employees, about 40% of the studio, in its second round of layoffs of 2026, across engineering, art and design, sound, marketing, IT support, research and quality assurance. It was announced in October 2026. 49 roles, about 40% of staff, by Schell Games' own figure.

Schell Games cited a challenging time in the games industry, to keep the studio on a sustainable footing. In its own words: "We're very sad to say that due to this challenging time in the game industry, Schell Games has found it necessary to lay off a significant number of employees in order to ensure a sustainable future for our studio. While this will enable us to stay stable moving forward, it is incredibly painful as we are losing some fantastic talent." (Schell Games, in its statement on LinkedIn (quoted by GamesIndustry.biz); the studio confirmed the 49 to Vertical Slice, as MIXED reported, and chief executive Jesse Schell told Road to VR it was about 40% of the studio).