nDreams Proposes Closure of Two Studios, Putting 78 Jobs at Risk

UK virtual reality developer nDreams proposed closing two of its internal studios on March 5, 2026, placing 78 roles at risk of redundancy and triggering a collective consultation process with affected staff. The studios marked for closure are Near Light, based in Brighton and acquired by nDreams in 2022, and Compass, a roughly 40-person team established in February 2025, barely a year before it was targeted for shutdown.

The timing of Compass' potential closure is particularly stark. The studio was created in the aftermath of nDreams closing two other internal studios in 2024, meaning the company is now proposing to shutter a team it built specifically to replace the capacity it had just cut. Months before this latest announcement, nDreams had also made 17.5 percent of its workforce redundant, according to Game Developer.

The company's statement laid out the scope plainly: "The company's proposals include the closure of the Near Light and Compass studios, and a reduction in its Facilities, Talent, Shared Technology, and Executive teams, with 78 roles at risk of redundancy." The cuts would reach senior leadership, with the proposals explicitly naming the Executive team among those facing reductions.

What remains after the restructuring would center on Elevation, nDreams' third internal studio, which currently employs around 120 staff working on unannounced projects. The company also said it would retain a lean group dedicated to XR research and development. "Together, we will remain focused on delivering world-class VR and XR games," the company stated.

CEO Tom Gillo did not frame this as a strategic pivot. "Today's announcement to restructure nDreams has been extremely painful and a decision we fought hard to avoid," he said. He credited the broader team with building "a fantastic culture" and delivering "stand-out VR games that have helped to push the medium forward over the past decade."

The company pointed directly at market conditions as the driver: "Despite every effort to make our existing structure a success and avert this outcome, the VR games market remains challenging, making further changes necessary to ensure a commercially viable and sustainable future."

nDreams is owned by Swedish conglomerate Aonic, which acquired the studio for $110 million in 2023. The proposed closures affect locations in Brighton and Farnborough, and the consultation process began the same day staff were informed, March 5. The company said it is committed to exploring every option to retain talent and will offer support to those affected throughout the process.