Editing Graham Gaylor (section)

== The 2024 Layoffs: A Primary Source Document ==

On '''June 12, 2024''', Graham Gaylor announced a reduction of approximately 30% of VRChat's workforce. What made this moment historically significant for VRCHistory is not only the event itself, but the document Gaylor published alongside it. The full text of his email to all VRChat employees was posted publicly on the VRChat Ask Forum by [[tupper]], with no redactions. It remains one of the most transparent and detailed public communications from a tech company CEO during a layoff.

Gaylor took direct personal responsibility:

<blockquote>
"Jesse and I take full responsibility for the decisions that brought us here."
<br/>— <i>Graham Gaylor, June 12, 2024</i>
</blockquote>

He identified four specific root causes:

{| class="wikitable"
|-
! Cause !! Explanation
|-
| '''Delayed management''' || Operated as a flat, IC-heavy organization for too long; didn't add product/people management until mid-2023; good work wasn't aligned toward shared goals
|-
| '''Over-hiring''' || Scaled the IC team aggressively in anticipation of continued 2021–2022 growth; that growth didn't materialize; resulted in an oversized team relative to revenue
|-
| '''Insufficient runway''' || Without continued growth, the $96M raised needed to stretch further; fundraising environment had deteriorated; profitability required structural change
|-
| '''Changing role needs''' || The next phase of VRChat's growth required different expertise and management profiles than those hired during the scale-up phase
|}

The severance package offered was notably generous: 12 weeks minimum, plus 2 additional weeks per year of tenure beyond 3 years, up to 6 months of healthcare, extended stock option exercise windows, and a lifetime VRChat Plus subscription for departing employees.

The email closes with the mission statement Gaylor has used consistently throughout VRChat's history:

<blockquote>
"Our mission remains the same, and it bears repeating: to enrich the world through immersive social connection and bring that magic to billions of people."
<br/>— <i>Graham Gaylor, June 12, 2024</i>
</blockquote>

The full email is preserved at: [https://ask.vrchat.com/t/an-email-from-our-ceo/25060 ask.vrchat.com/t/an-email-from-our-ceo/25060]