Warner Bros Shuts Down 'RWBY' Creators Rooster Teeth

Warner Bros. Discovery announced the closure of Rooster Teeth, the studio behind "RWBY" and "Red vs. Blue," after several failures to sell the studio.

Over two decades since it opened, RT general manager Jordan Levin said in a staff memo that all of RT's operations will cease operation on Wednesday and lay off the remaining 150 full-time employees and dozens of contracted workers.

Levin cited "fundamental shifts in consumer behavior and monetization across platforms, advertising and patronage" for the closedown.

Rooster Teeth was previously reported to move its entire catalog of "Camp Camp" and "Red vs. Blue" videos from its 45 million-subscriber YouTube channel to its ad-supported website because "YouTube revenue is just not cutting it for us anymore."

Only Roost Podcast Network is expected to continue operations after the closure.

The announcement came just a year after RT celebrated its 20th anniversary.

Warner Bros. Discovery Continues Cost-Cutting Measures

The closure of Rooster Teeth is only the latest part of cost-cutting measures felt across Warner Bros' media division since it was acquired by Discovery and AT&T in 2022.

The past month has seen several fully-made projects canned projects like "Coyote Vs. Acme" and "Batgirl," both unreleased films after being deemed unprofitable.

Just this week, Warner Bros' gaming division said it would be moving on from one-and-done single-player games and instead focus on mobile, free-to-play and live-service games, all notoriously filled with microtransactions and in-game purchases.

Before the Discovery acquisition, WarnerMedia reportedly ran on over $40 billion in debt.

The new Warner Bros. Discovery, under the leadership of David Zaslav, has since seen several layoffs, service fee hikes, budget cuts, and division downsizing in a brutal effort to gain profit.

Internet Laments Rooster Teeth Closure

Following the announcement, longtime fans expressed support and gratitude for the studio that cultivated several big fan communities.

"RWBY," Rooster Teeth's biggest series, has amassed hundreds of thousands of fans online that it even received its own anime in 2022.

This is in addition to the original eight seasons and several spin-offs.