A veteran VR studio faces a tough reset in 2026
January 6, 2026 — Cloudhead Games, one of VR’s long-running studios (best known for Pistol Whip), has confirmed a major workforce reduction effective January 7, 2026. Roughly 70% of the team is being laid off, with about 30% remaining to continue the studio’s work.
CEO Denny Unger pointed to the broader industry downturn and VR’s ongoing funding challenges — including a lack of platform funding — describing the situation as an “impossible position” despite Cloudhead’s efforts to reinvest from prior successes.
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Denny Unger’s public message confirming the cuts and calling on the industry to support affected staff.
A message from Denny Unger
“Cloudhead must make the difficult choice to reduce our workforce effective January 7th 2026. 30% of us will remain to continue the mission.”
To help those impacted, Cloudhead also shared a public “Reverse Recruiting” list intended for hiring teams to connect with departing staff directly.
Reverse Recruiting list (public)
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Written by Ronny Fiksdahl, Founder & Editor of Fix Gaming Channel.
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