AT&T’s digital media company Otter Media, the holding company that operates Crunchyroll and VRV’s parent company Ellation, laid off about 10% of its staff as part of a company reorganization on Wednesday.
Otter Media employs about 1,400 people, so the layoffs will affect about 140 full-time employees and contractors.
AT&T announced in August that it had acquired the entirety of Otter Media from its previous co-owner The Chernin Group.
As part of the restructuring, Rooster Teeth (RWBY) is now part of Ellation, and Machinima will be folded into Otter Media beginning on January 1.