UPDATED! Linden Lab Lays Off Over 40 Staff, and Shuts Down Development on the Sansar Project—But Linden Lab CEO Ebbe Altberg States Sansar Has NOT Shut Down, Despite the Layoffs

This is the blogpost that I hoped that I would never have to write.

I have been informed, by a very reliable source whom I shall keep confidential, that today was the day that Linden Lab shut down Sansar development. I was told that there were over 40 people laid off, and a small number of software developers were moved from Sansar to Second Life.

Having learned my lesson from past mistakes, I will not be reporting on or confirming any names of staff involved in today’s layoffs here (although I have received a list, and it is quite a long one, of people let go).

It would appear that Linden Lab will be keeping the Sansar servers running for some previously scheduled events. What happens after that is anybody’s guess.

I’m still in a state of shock since I received the news early this evening. So I think it would be best if I simply reported the news today, and left any speculation or editorializing for another day.

As many of you know, Sansar was the whole reason that I started this blog in the first place, and I am truly heartbroken.

UPDATE 10:51 p.m.: Just a few minutes ago I received a direct message via Discord from Linden Lab CEO Ebbe Altberg, who told me that Sansar is not being shut down:

As you can see Sansar is up and running so please don’t say it’s been shut down. Thanks.

Ebbe also posted a message in the official Sansar Discord server:

So, I’m only going to say this tonight as it’s late. We can pick up the conversation in the following days. Yes, there were layoffs today. A truly wonderful group of people. But as you can see Sansar is up and running. We are still in discussion about next steps. Including with the wonderful group of people. More to come. Don’t give up yet. Go create and have fun. Not much point in speculating until we can tell you more.

So it would appear that, perhaps, this is not the end for Sansar after all. I must confess that I am confused, as this new information does not match up at all with what my well-placed source has told me. Between the October layoffs and today’s layoffs, who’s left to keep Sansar running?

UPDATE Feb. 12th: Once again, I am getting a certain amount of criticism from various quarters about how I presented this news. At least one person wants me permabanned from Sansar and Second Life for breaking this story. To which I say: don’t shoot the messenger if you don’t like the bad news. Take out your frustrations on the company, not on me.

One thing that I am guilty of is not getting a quote from Linden Lab before writing my blogpost. However, given that Linden Lab has traditionally not bothered to address any staff layoffs in the past, I decided to go ahead anyways. I will be surprised if LL makes any sort of formal announcement about what happened yesterday.

But please don’t hold me to the same standards as a professional journalist because I, very clearly, am not. I’m a hobbyist blogger who had a passion for Sansar, which is the reason I started my blog in the first place. And I am heartbroken by this recent turn of events.

I repeat here what I first said when I broke the story of the October layoffs:

This is news, I am not under a gag order from Linden Lab, and it directly impacts the Sansar community. How could I not report on something so major? Ebbe Altberg, the board of directors and upper management at Linden Lab have already made their decisions and acted on them, and the news would have eventually gotten out anyway.

Linden Lab Lays Off 30 Staff

I can now report this morning that Linden Lab has laid off staff as part of what appears to be a significant reorganization and reallocation of staff resources. My source (who shall remain anonymous, but whom I consider a good source) tells me that 30 people were let go. The rumour mill this weekend has been saying that 20 to 30 people were laid off, so the figure would appear to be accurate.

So we can assume that Sansar staff who have “disappeared”—notably Landon McDowell/Landon Linden (the Chief Product Officer), Nyx Linden, and Cara Linden—have not been reassigned to Second Life, and are indeed gone. Jesus Christ.


Another source tells me something which may or may not be true:

I heard a rumour Linden Lab got bought, about two/three weeks ago; I don’t fully trust the source (it was definitely a rumour), but that’d explain it.

It is now clear that something major has happened at Linden Lab, whatever it is. I now disagree with what Inara Pey has said about the Friday Product Meetup even more strongly.

This is not “business as usual”. The hastily-arranged Friday Product Meetup was damage control, an effort to get out in front of the story.

UPDATE 10:59 a.m.: I am angry about how all this was handled by Linden Lab. I am sad for the Linden Lab staff who have lost their jobs. And I absolutely hate how private companies with non-unionized employees handle staff changes like this. It’s brutal. As the survivor of a layoff very early in my career, when I did work for a time at a private software company, my heart goes out to the Linden Lab staff who survived this layoff, who now have to adjust to a new reality (and probably an increased workload, too).

And I have been angrily arguing with several people in Discord, who think that I should not have published this blogpost (as if the news wasn’t going to get out anyway; in this digital age you can’t hide something like this). I am staying off Discord for the rest of the day, before I say something in anger that I truly regret.

This is news, I am not under a gag order from Linden Lab, and it directly impacts the Sansar community. How could I not report on something so major? Ebbe Altberg, the board of directors and upper management at Linden Lab have already made their decisions and acted on them, and the news would have eventually gotten out anyway.

UPDATE 12:22 p.m.: Inara Pey left a comment on an earlier blogpost, telling me that, as far as she was aware, Landon McDowell, the Chief Product Officer, was still with the company:

While Landon McDowell (Landon Linden) has taken something of a lead with Sansar, his title is Chief Product Officer, which (so I understand) covers both Sansar and SL. Right now (Monday, Nov 4th), he still appears to be active at the Lab (e.g. his SL account is still active, unlike a couple of others I’ve been checking on).

So, it is possible that with Sheri taking over the “GM” post with Sansar, he may have simply stepped back from the more day-to-day hands-on aspects of running Sansar, rather than having departed from LL or anything of that nature.

UPDATE 2:53 p.m.: Wagner James Au of the long-running blog New World Notes has confirmed my reporting, citing his own sources, saying:

Confirming a blog post from Ryan Schultz (along with some ominous rumblings I heard last Friday), some insiders tell me that Linden Lab has recently laid off over 20 staffers working on Sansar, the company’s social VR platform. Even more tragically, the layoffs include some longtime Lindens who got their start working on Second Life, Linden Lab’s core profitable product, but who were moved to the Sansar team.

Asked to comment on these layoff reports, a Linden Lab spokesperson just sent me this response, in its entirety: “We have no comment at this time, but we’re continuing to develop both Second Life and Sansar, and we’re excited about the many new partnerships and features on tap for 2020!”

UPDATE Nov. 13th: I haven’t been checking messages sent to me via the Contact page on this blog lately, so I missed this anonymous message sent to me on Nov. 4th:

I have a trustworthy, insider source. I can confirm Linden Lab laid off a significant number of Sansar staff (more than 50%) last week ([October] 30th). Sansar is not growing, no growth = no revenue. The Lab couldn’t get secure more funding/investor money so they had to do this. [The] events pivot is a Hail Mary to try increase user growth. Morale within the company is low (90% of avatar team was laid off). Ironically, 100% of the team working on events was laid off as well. Don’t expect any large features in the next few months.

So I have yet another source that corroborates what both I and Wagner have been told.

Another Bombshell Announcement: High Fidelity Lays Off a Quarter of Their Staff

High Fidelity, which recently announced that they were shutting down almost all of their public spaces and discontinuing General Assembly meetings, laid down yet another bombshell announcement today.

In an official blogpost titled Toward a Digital World, High Fidelity CEO Philip Rosedale said:

We’ve been working as a company for six years now, writing open-source software and creating test events and experiences to enable this imagined place to come into existence…We’ve done a ton with a small and passionate team.

But as of today, 2019, we probably still have a few years to wait. VR headsets, even the latest ones, are still not comfortable enough to wear for very long, and still cannot be used to read and write messages, take notes, or do most kinds of work…

If you had asked me when we started the company in 2014, I’d have said that by now there would be several million people using HMDs daily, and we’d be competing with both big and small companies to provide the best platform—but I was wrong.

Philip goes on to state that the company is changing direction, to refocus on a creating a platform for work teams to collaborate, and that as a part of this pivot, they are letting go of a quarter of their staff:

To refocus on this new project, we have made the very hard decision today to reduce our team by 25%, meaning that 20 people will be leaving us who have made great contributions to High Fidelity, and whom we will greatly miss.

I’ve heard from an inside source that some very talented software engineers have been let go, instead of (and I quote) “the Bingo Extremo people and the people who put on the disastrous events”. I am hoping that Linden Lab will swoop in and pick up a few good people to help them continue to build Sansar, but who knows what will happen now.

Emily, HiFi’s Community Manager (who appears to have survived the layoffs), helpfully provided some follow-up questions and answers to Philip’s announcement today in a FAQ posted to the High Fidelity Community Forums:

Will you still be accepting feature requests, and what will happen to requests already made?

Unfortunately, no, we do not have the resources to work on broad-based feature requests from users. As such, will be closing the feature request list down as of June 1st. We will no longer triage feature requests; however, leaving it up for a few weeks allows our community to review it in the event it inspires open-source project proposal ideas. Unfortunately, there’s no way to make the feature request board read only.

Will you continue to offer experiences like Nefertari’s Tomb and Remembering D-Day?

We’ll discontinue these experiences after the events currently scheduled to allow us to focus on our new direction.

Do you still plan to add support for the Quest, Focus, and other new HMDs?

Yes, that’s still very much on the roadmap. We don’t have timing of the availability on specific devices at this time.

Does this mean that you are going to improve the High Fidelity experience for desktop users?

Yes. Since many people will use their laptop or desktop PC to access High Fidelity, broadening access is a key part of our strategy. As noted in Philip’s blog post, we simply feel that mass-market adoption of VR hardware is a few years away still.

(I haven’t quoted the entire FAQ; you can read it for yourself here.)

Well, as I had expected, it’s now clear that High Fidelity will not be launching on the Oculus Quest anytime soon. Philip Rosedale has bigger problems on his hands.

And the current user base on High Fidelity, many of whom are long-time committed users, are going to face a stark choice: stay or jump ship? No doubt some will consider Sansar or VRChat or another platform for their creative and development work. The fact that the company will no longer be accepting any broad-based feature requests from end users is very troubling, and it could force some people to switch platforms.

Does this mean that VR is in trouble? No, I still believe that the Oculus Quest and other new standalone and PC-based VR headsets will bring an ever-increasing audience into virtual reality. But it is now very clear that this uptake of technology will take a lot longer than most people originally estimated. The VR platform companies that will survive are those that acknowledge this fact and plan accordingly.

Also, it’s clear that the something has gone slightly awry with the more freeform software development model which had been used by High Fidelity to date, as opposed to the much more structured monthly software updates being issued by companies such as Linden Lab for Sansar. (And yes, I have confirmed from many longstanding HiFi users at the first, well-attended Federated Users Group meeting that this sort of loosey-goosey software development has been a long-standing issue at High Fidelity.)

Frankly, High Fidelity is burning through venture capital and they need to smarten up. Philip Rosedale recognizes this, and it’s not too late (despite what some people may say). High Fidelity is taking a gamble by moving to a workplace team platform, but it’s a calculated risk. (Then again, Second Life tried this too, and it failed miserably. Anybody remember Second Life Enterprise?)

What happens next? Who knows. But it will, as always, be fascinating to watch (and blog about). Stay tuned!