ConsumerUS

Rec Room Layoffs

March 2025

Rec Room announced a layoff affecting 0 employees (16% of its workforce) in March 2025. The company operates in the Consumer sector.

People Affected

Percentage

16%

Announced Date

Mar 3, 2025

About

Rec Room, a social gaming platform and virtual community, has laid off 16% of its workforce. This reduction, announced in a message to employees, affects many talented individuals and is attributed to significant market shifts, including slowed gaming industry growth, higher interest rates, and a more challenging fundraising environment. To ensure long-term success, the company is adjusting its financial strategy, moving from a model of frequent fundraising to budgeting for extended runway. Impacted employees are being offered three months of paid severance, six months of healthcare premium coverage, and outplacement support. The decision reflects the company's effort to navigate current economic headwinds while maintaining its mission as a creative and social hub for millions of users.