Riot Games layoff wave will hit 530 people

Riot Games layoff wave will hit 530 people

Time Stamp: January 23, 2024 7:35 AM
Source Node: 3079892

In the wake of the Riot Games layoff announcement, the company is facing a critical juncture, as it eliminates approximately 11 percent of its global workforce, amounting to 530 positions.

Riot Games layoff statement is now official

This decision, revealed through two separate statements aimed at players and Riot employees, underscores a significant shift in the company’s operational strategy. The communication specifically to “Rioters” outlined the severance package and other benefits, reflecting the company’s effort to manage this transition with respect and grace.

Alongside the Riot Games layoff, the company also announced the sunset of its publishing label, Riot Forge. Having contributed to six titles, including the upcoming ‘Bandle Tale: A League of Legends Story’, Riot Forge’s closure marks a strategic pivot for the company. In their joint letter, CEO Dylan Jadeja and co-chairman Marc Merrill characterized Riot Forge as an exploratory venture in collaboration with indie developers. However, they noted that the focus is now shifting back to Riot’s internal projects, with Forge wrapping up its operations post the release of ‘Bandle Tale’.

Riot Games layoff
In the wake of the Riot Games layoff announcement, the company is facing a critical juncture, as it eliminates approximately 11 percent of its global workforce (Image credit)

Addressing another aspect of the Riot Games layoff, the executives disclosed that the digital collectible card game ‘Legends of Runeterra’ has not met financial expectations since its 2020 launch. Consequently, the game’s development team will be downsized, honing in on the more successful ‘The Path of Champions’ game mode.

Rioters,

Today, I’m sharing a decision we hoped we would never have to make at Riot. We’re changing some of the bets we’ve made and shifting how we work across the company to create focus and move us toward a more sustainable future. This decision means we’re eliminating about 530 roles globally, which represents around 11% of our workforce, with the biggest impact to teams outside of core development. This also sadly means we’ll be saying goodbye to many talented colleagues and friends across all areas of Riot.

I realize this is awful news to hear, and especially hard for those who will be leaving us. To all the Rioters who are being laid off, we are deeply sorry that it has come to this.

As CEO, I’m accountable for the changes we’re making and where we’re headed in the future. So, I think it’s important for me to share how we got here and how the next few days will work.

–Dylan Jadeja

The continuing trend of layoffs in 2024

The year 2024 continues to be marked by a significant trend of layoffs within the tech industry, a pattern that has been notably evident since 2022. This period has witnessed several major players, including those affected by the Riot Games layoffs, making tough decisions to downsize their workforce.

Riot Games layoff
The Riot Games layoffs and similar actions by other tech firms are a response to a complex web of economic pressures and strategic shifts (Image credit)

Underlying factors behind the layoffs

The Riot Games layoffs and similar actions by other tech firms are a response to a complex web of economic pressures and strategic shifts. These decisions are often driven by the need to streamline operations, optimize costs, and refocus business strategies in an increasingly competitive and ever-evolving market. The layoffs at Riot Games and other tech companies underscore the volatile nature of the industry, where rapid changes in technology and market dynamics can significantly impact employment trends.

These layoffs have a domino effect, influencing the pace of innovation, altering company cultures, and affecting employee morale across the sector. The trend observed in the Riot Games layoffs also raises questions about the sustainability of current business models in the face of technological disruptions and market uncertainties.

Tech giants such as Nokia, Google, T-Mobile, Microsoft, Amazon, Facebook, Twitter, Spotify and Twitch have all implemented workforce reductions in response to various economic pressures and strategic realignments.

Featured image credit: Riot Games

Time Stamp:

More from Dataconomy