We knew something was up with all their YouTube shutting down, and lack of posting on social media and expected some heavy restructuring but not a full shut down. According to Deadline, 81 people have been laid off.
Machinima spokesperson said:
“A select number of Machinima employees remain with the company, which is now actively providing services to supercharge the combined portfolio of Otter Media….Machinima has ceased its remaining operations, which includes layoffs. Russell Arons remains with Machinima, and is assisting with transitional activities as she explores new opportunities.”https://deadline.com/2019/02/machinima-closing-layoffs-warnermedia-otter-media-1202547949/
Machinima on January 1 became a part of Otter Media as parent AT&T has been looking to align its related digital assets after its $81 billion acquisition of Time Warner. Otter laid off about 10% of its staff in December in a restructuring that consolidated its consumer brands under the
Ellationdivision, which also includes the anime-focused Crunchyroll, the subscription service VRV and fellow gamer-focused Rooster Teeth. “”