VR Chat Is Laying Off 30% Of Its Workforce

VR Chat Layoffs

More layoffs are hitting the gaming industry, and this time its hitting one of the most popular VR experiences available. VR Chat has announced that its laying off 30% of employees from the company.

The company released a statement on Wednesday night announcing the layoffs on social media.

“Although difficult, this decision is a proactive step towards securing the future success of our business, community, and mission,” the statement reads. “We believe it positions us strongly for the years ahead, allowing us to navigate challenges effectively and continue delivering on our mission.”

The decision comes due to various reasons, according to an email from CEO Graham Gaylor to employees, including overhiring and not bringing in a management team. He also admitted that he “did not set everyone up for success”.

“We saw incredible growth in 2021-2022 and, in anticipation of continued growth, scaled our (individual contributor) IC team significantly,” Gaylor said. “The reality was different. Not only did we not maintain 2021 levels of growth, we shrank year over year. A scaled team with a smaller user base led to an oversized organization & burn rate relative to revenue and product scale.

“We hired tremendously talented people who worked on a lot of great ideas and projects, but without a management layer to align everyone towards the same goals, we did not set everyone up for success.”

As far as determining who to let go, Gaylor said it came down to who had the “critical skills, expertise, and roles” that matched what they were looking for for VR Chat’s future needs.

“These decisions are not a reflection of the quality of the team members who are leaving, but rather one of a changing business and market,” he said.

Those who are being let go are receiving 12 weeks of severance pay, six months of healthcare coverage, stock option vesting, and more.


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