Machinima to Shutter, Lay Off Staff

Machinima Logo - Publicity - H 2019

"Machinima has ceased its remaining operations, which includes layoffs," said a spokesperson for the online media company.

Machinima is ceasing operations after 19 years, a spokesperson for the online media company has confirmed to The Hollywood Reporter.

"A select number of Machinima employees remain with the company, which is now actively providing services to supercharge the combined portfolio of Otter Media," the spokesperson said in a statement. "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.”

The company was comprised of 100 employees before the layoffs.

The company was born out of YouTube's early heyday, building a network of creators focused on producing video game content for their fans. In 2016, Machinima was acquired by Warner Bros. Digital Networks and underwent rebranding last year. In January, however, the brand discontinued its YouTube channels and set its videos to private.

The layoffs at Machinima follow news in December that Otter Media — a subsidiary of WarnerMedia that owns Machinima and other media brands such as Rooster Teeth, Fullscreen and Crunchyroll — had laid off around 10 percent of its employees. 

Otter Media was established in 2014 as a joint venture of AT&T and The Chernin Group that would buy, invest in and grow digital media businesses. AT&T bought out TCG's stake in 2018 following its acquisition of Time Warner, which was subsequently renamed WarnerMedia, and also acquired Machinima in the process.

Originally launched as its own website, Machinima evolved over the years to become a multi-channel network on YouTube that hosted a variety of content partnerships with other media companies and creators.