AUSTIN, Texas — After more than 20 years in business, an Austin-area online studio is shutting down and with it, more than 130 employees are being laid off.
On March 11, the Texas Workforce Commission shared a list of reported layoffs over the past few weeks through the Worker Adjustment & Retraining Notification Notices, WARN Act.
The list includes 133 employees from Rooster Teeth, who are set to be laid off on May 11 as the company closes for good.
According to a post on the studio's website, Rooster Teeth staff was informed of the closure during an all hands meeting on March 6. The post also includes a memo from Rooster Teeth General Manager Jordan Levin.
Levin wrote that since inheriting ownership of Rooster Teeth, Warner Bros. Discovery has continued its investment into the company and its content. However, Rooster Teeth is now shutting down "due to challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage."
Levin said The Roost podcast network is not currently impacted by the closure, and it will continue operating while Warner Bros. Discovery "evaluates outside interest" in acquiring the network. Additionally, Rooster Teeth will soon wrap up the final season of its flagship series, "Red vs. Blue."
Levin said there are many questions to answer in the coming days, and weeks and the company is working through what comes next in real time. However, as it learns more, Rooster Teeth will share its plans for franchises, shows, partnerships and merchandise both internally and with the community on RoosterTeeth.com.
Rooster Teeth was founded in 2003 in "a garage in Buda, TX." It became a quick success due to "Red vs. Blue," its action-comedy machinima series that uses footage from the game "Halo." Over the years, Rooster Teeth has expanded to make games, films, podcasts and more, as well as host live events like its annual RTX convention.
"Our legacy is not just a collection of content but a history of pixels burned into our screens, minds, and hearts," Levin wrote in his memo. "Rooster Teeth has made an indelible mark on the media industry, and we should be so proud of the countless ways we pioneered a business connecting creators and content with a dedicated community."