Tech Layoffs 2019: Austin, Texas-Based Internet Media Company Cuts 13 Percent Of Staff

Internet media company Rooster Teeth laid off 13 percent of its staff Thursday, the first big round of layoffs in the company’s history.

The Austin, Texas-based company, which began in 2003 with the debut of popular web series “Red vs. Blue,” is currently a part of WarnerMedia’s Otter Media and focuses on producing gaming, sci-fi, and fandom-related content. Around 50 staff members were let go in the move out of the 419 total employees which the company reported in July.

This round of layoffs was, according to a memo obtained by Variety, helping Rooster Teeth reorganize to better pursue future goals.

“As we looked ahead at all of our upcoming opportunities and challenges, we had to make some difficult decisions about how we are organized,” CEO and co-founder Matt Hullum wrote in the memo. “[The layoffs are not] reflective of anyone’s individual performance, and we’re thankful for all that our former colleagues have contributed.”

These cutbacks came from all parts of the company’s structure, including production, advertising, e-commerce, and distribution. The only division unaffected was event staff. Rooster Teeth would not confirm to Variety if any senior executive staff members were let go in the move.

The company got its start producing “Red vs. Blue,” a “machinima” series animated using in-game assets from Microsoft’s “Halo” video game series. The show is still being produced, making it the longest-running web series of all time.

The company was acquired by internet content producer Fullscreen in 2014, which was in turn acquired by WarnerMedia’s Otter Media.

Some of the company’s other releases include “RWBY,” an American anime series created by the late Monty Oum, and “Gen:Lock,” an animated series fronted by Michael B. Jordan which premiered on the company’s own streaming service before moving to Adult Swim.

Rooster Teeth also debuted its first live-action feature film, “Lazer Team,” in 2015. The sci-fi comedy was crowdfunded via Indiegogo and starred many of the company’s founding members. A sequel. “Lazer Team 2,” was released in 2017 for YouTube Red.

Earlier this week, reports surfaced that Silicon Valley-based cybersecurity company Symantec would cut 152 jobs at its headquarters. In June, tech giant IBM confirmed that it would lay off roughly 1,700 workers.

According to a tally by Business Insider in late July, there have been over 3,200 layoffs in 2019.