UK-based VR game developer nDreams has proposed a significant restructuring plan that could result in 78 employees being made redundant and the closure of two internal studios, one of which was founded just last year.

The details:

The company announced today that it will be closing subsidiaries Near Light and Compass, with 78 jobs across its Facilities, Talent, Shared Technology, and Executive teams at risk as a result. "Despite every effort to make the existing structure a success, the VR games market remains challenging, making further changes necessary to ensure a commercially viable and sustainable future,” nDreams said in its statement posted to LinkedIn.
The developer’s Elevation studio, which currently employs around 120 people, will become the core of the company. nDreams also stated that it plans to maintain its R&D group, which is focused on developing XR technologies. “I’d like to extend my personal thanks to everyone at nDreams,” CEO Tom Gillo said in a statement. “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 company shuttered two other internal studios and made 17.5 percent of its workforce redundant in early 2025. The cuts come just approximately three years after the studio was acquired by Swedish conglomerate Aonic for $110 million in 2023.

VR developer nDreams announces major restructuring with 78 jobs at risk