Drooid Logo
Back to today’s briefing

Story perspectives

Cloudhead Games Cuts 70% Workforce Amid VR Challenges

1/6/2026

39 8 Full Breakdown

1 of 1

Story summary
  • Cloudhead Games, a Canadian VR studio, is laying off 70% of its workforce, effective January 7, 2026.
  • Denny Unger, Chief Executive Officer of Cloudhead Games, attributed the decision to industry challenges, including a downturn in gaming and insufficient platform funding.
  • Unger announced a reverse recruiting initiative to help departing employees find new opportunities.
  • The layoffs reflect broader trends in the VR sector, with other studios also reducing staff.