Rec Room Layoffs

Industry Consumer · Location Seattle · United States · Subscribe (RSS)

3
Layoff rounds
141
Employees laid off
Series F
Funding stage
$294M
Total raised

Rec Room has 3 publicly reported layoff rounds on record between March 3, 2025 and March 31, 2026. A total of about 141 employees were affected across these rounds.

Layoff history

March 31, 2026
Rec Room cut 100% of its workforce
100% of workforce Location Seattle

Rec Room disclosed a workforce reduction affecting its Seattle operations in March 31, 2026.

Source: techcrunch.com

August 27, 2025
Rec Room cut 141 employees
141 laid off Location Seattle

Rec Room eliminated 141 jobs on August 27, 2025, roughly half its remaining staff, as the Seattle social gaming startup acknowledged it had stretched too far across too many platforms. A WARN filing with Washington State confirmed the count. Co-founder Cameron Brown posted a candid blog update the same week, saying the company had become "too small to realize the 'anyone can build anywhere' vision, but too big to pivot to a more focused experience." The company had tried to support content creation on PC, VR, consoles, and mobile simultaneously, but meaningful creative activity concentrated almost entirely on PC and VR, leaving mobile and console efforts as a financial drain with little return. These cuts followed a 16% reduction in March 2025 and left the company with just over 100 employees. Departing workers received three months of continued salary, six months of health benefits, and the option to keep their work computer.

Reason: Over-expansion across platforms created unsustainable costs

Source: geekwire.com

March 3, 2025
Rec Room cut 16% of its workforce
16% of workforce Location Seattle

Rec Room disclosed a workforce reduction affecting its Seattle operations in March 3, 2025.

Source: blog.recroom.com

Data for Rec Room is compiled from public WARN Act filings and reporting linked above. See our methodology.