VR Specialist nDreams Announces Major Restructuring: Two Studios to Close with 78 Jobs at Risk

UK VR developer nDreams closes Near Light and Compass studios. Read about the 78 job losses and the firm's consolidation into its Elevation studio.

By: AXL Media

Published: Mar 5, 2026, 11:18 AM EST

Source: The information in this article was sourced from GamesIndustry.biz

A Painful Pivot for a VR Pioneer

The VR gaming landscape has claimed another significant casualty as nDreams, one of the UK’s most prominent XR specialists, enters a period of deep contraction. In a statement released on March 5, 2026, CEO Tom Gillo described the decision to restructure as "extremely painful," citing "undeniable commercial challenges" in the current VR market. This restructuring follows a turbulent two-year period for the company, including the departure of founder Patrick O’Luanaigh in 2025 and a previous round of layoffs in 2024 that impacted nearly 18% of the workforce.

Studio Closures and Job Losses

The restructuring centers on the shuttering of two internal teams:

Near Light: The Brighton-based studio acquired by nDreams in 2022.

Compass: A 40-person team in Farnborough that was only established last year following a prior reorganization. A total of 78 roles are currently under consultation. Notably, the company confirmed that these layoffs are not restricted to junior staff but will impact "all levels, including senior leadership."