Official press release from VRChat or credible news sources

VRChat Lays Off 30% of Workforce Amid Funding Challenges

Jun 13, 2024, 01:36 AM

VRChat has announced it is laying off 30% of its workforce. The layoffs are believed to be a result of a lack of venture capital financing for later-stage VR companies. VRChat has raised approximately $100 million, likely at a valuation of $250-350 million. The company needed to reduce capital expenditures, get acquired, or go public, but the latter two options are not favorable at this time. The layoffs come at a worrisome time in the tech and gaming industry.