Combat Waffle Studios, the developer behind VR shooter Ghosts of Tabor, has laid off staff.
Announced yesterday via a LinkedIn post, CEO, creative director, and founder Scott Albright said that the studio made the “difficult decision” to reduce the size of the team.
“As part of this, we are saying goodbye to a number of talented individuals who have contributed meaningfully to our work,” Albright wrote. “We are grateful for their efforts and are committed to supporting them as they transition to new opportunities. Any studio would be fortunate to have them.”
The decision came as a result of a project cancellation, which the team was working on with an unnamed “large platform partner.”
Moreover, Albright said the actions are part of a broader effort to “align the company with the current state of the VR industry” and ensure that it is positioned for “long term sustainability.”
When it comes to sustainability, the VR industry has been anything but. Meta’s Reality Labs division, which houses game studios and the company formerly known as Oculus, recorded an annual loss of $19.19 billion during the fiscal year ended December 31, 2025. In total, the division has lost $83.6 billion in six years.
During the past couple of years, Meta has regularly trimmed its workforce, laying off employees in its subsidiaries and shuttering multiple VR studios entirely.
Meta hasn’t been alone in this. In May, VR specialist Survios reportedly laid off the majority of its development team. Then, just mere weeks ago, the Embracer-owned VR developer Vertigo Games closed its Amsterdam studio.
Despite the grim ongoing forecast, the CEO of Combat Waffle Studios says the team’s focus remains unchanged. “Ghosts of Tabor continues to be our core product, and we will continue expanding that universe alongside our partners,” Albright says.
“We remain confident in the future of VR and our role within it.”