Kluge Interactive Faces Layoffs Amid Meta’s Shift in Priorities
Kluge Interactive, the developer known for the popular VR rhythm game Synth Riders (2018), recently confirmed that the studio has undergone significant layoffs earlier this year.
Despite their work on games for Horizon Worlds and Roblox, as well as expanding Synth Riders to new platforms like Nintendo Switch, Kluge Interactive was not immune to the changes happening within Meta.
Meta’s decision to refocus its priorities away from ongoing Quest support for Horizon Worlds had a direct impact on Kluge Interactive, leading to the unfortunate layoffs. CEO Arturo Perez revealed that the studio has been reduced to half its size, down to a team of 50 from a peak of 100 last year.
While the exact reason for the layoffs was not explicitly stated, the partnership between Kluge Interactive and Meta for Horizon Worlds suggests a direct correlation.
The XR industry as a whole has seen its share of challenges, with Meta’s closure of first-party VR studios like Armature Studio, Twisted Pixel, and Sanzaru Games, leading to project cancellations and layoffs across the board.
This ripple effect has even impacted competitors like Rec Room, once valued at $3.5 billion, which is now scheduled to go offline in June.
nDreams, another veteran developer in the VR space, is also feeling the effects, with internal studios Near Light and Compass facing potential closure. Their focus now shifts to nDream Elevation, a remote studio that recently released Reach (2025).
