VRChat let go 30 percent of its team and promised at least 12 weeks of severance for departing staff.

The CEO of VRChat, Graham Gaylor, suggested in an email posted to the company’s forums that recent management changes have set up the company “for success over the next five years.”

“We’re in a good cash position, but to execute effectively on our five-year strategy, we need an extended runway with line of sight to profitability. The current fundraising environment is tough, and we’ll likely struggle to fundraise without greatly improved metrics. To take control of our own destiny and not solely depend on market-driven outside investment, we’re placing an emphasis on capital efficiency to ensure VRChat thrives.”