Machinima lays off employees, halts operations following AT&T merger - Dexerto

Machinima lays off employees, halts operations following AT&T merger

Published: 3/Feb/2019 23:14 Updated: 3/Feb/2019 23:25

by Virginia Glaze


Multiplatform entertainment network Machinima has laid off nearly its entire staff, according to documents from California’s Employment Development Department.

The company permanently laid off a reported number of 81 employees two weeks ago, following its merger with AT&T’s Otter Media in late 2018.


This marks a major outflux of staffers, as Machinima’s previous employee count sat at around 100 workers.


The VergeMachinima partnered with Otter Media in 2018, which spurred a slew of major changes for the company.

Among the remaining employees is Machinima GM Russell Arons, who is “is assisting with transitional activities as she explores new opportunities,” as told by a spokesperson for the company.

The spokesperson claimed that “a select number of employees” will remain with Machinima, which has since “ceased its remaining operations” – including layoffs.


Machinima wiped its YouTube channel on January 19, prompting an outpouring of nostalgia amongst fans.

The spokesperson also stated that Machinima is currently “actively providing services to supercharge the combined portfolio of Otter Media,” which the company partnered with last year, resulting in the highly-criticized wiping of its historic YouTube channel on January 19.


Otter Media itself is arguing that Machinima has not shut down, but is rather “amplifying [Otter’s] focus on the gaming and anime community,” as told in a statement to Variety.


Digital TV EuropeOtter Media claims that Machinima is not shutting down, but will rather provide services for the company, instead.

Machinima itself was once the hub of YouTube’s gaming community, with over 12 million subscribers before its ultimate demise in January – which deleted over a decade’s worth of widely-beloved content.

Now, it appears that the company is taking a drastic turn, instead providing services to Otter Media, rather than creating content for a broad audience of consumers.