Kluge Interactive, developers of the VR title Synth Riders, has confirmed multiple rounds of layoffs since December. CEO Arturo Perez stated that the studio peaked at 100 employees last year but is now operating with a team of 50. These cuts, including a major round last December and further reductions in December and January, come as Synth Riders generates steady but insufficient revenue to sustain the full operation.

The adjustments follow a partnership with Meta announced in November 2023 to develop games for Horizon Worlds, such as Chicken Tag and Slimoshi. While speculation links the layoffs to Meta's changes in VR support for the platform, Perez neither confirmed nor denied this factor. The studio has also released BeatBlocks on Roblox and their most recent VR project, Final Fury, a fighting game.

This downsizing aligns with broader trends in the VR sector, where revenue pressures have led to similar restructurings. Kluge's reduced footprint may allow for more focused efforts on existing titles, though the halved workforce presents clear operational constraints. The metrics speak for themselves.