Riot Games lays off over 500 employees, or 11% of its workforce
Riot Games, a subsidiary of Tencent Holdings, recently announced its plan to reduce its global workforce by about 11%, affecting approximately 530 employees. The news was shared in a blog post on Monday, which included a letter to the employees from CEO Dylan Jadeja.
The Los Angeles-based Riot Games, known for popular titles like “League of Legends,” said that the impact of the layoffs would be most significant on teams outside of core development.
The move follows a broader trend in the gaming industry, with Electronic Arts Inc. implementing a 6% staff reduction and downsizing office space earlier in 2022. Digital game publishers are facing challenges in growth as audiences hold off on purchasing expensive titles amid high inflation. Last year, Electronic Arts Inc. also reduced staff by 6% and relinquished some office space.
In the letter to employees, Jadeja acknowledged the necessity for a more focused approach, saying:
“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.”
The layoffs are considered a strategic move to enable Riot to concentrate on its core portfolio of live games. The company will focus on “League of Legends,” “Valorant,” “Teamfight Tactics,” and “Wild Rift,” according to a separate blog from Jadeja and co-founder Marc Merrill.
Riot also announced the cessation of new game development under “Riot Forge” and the discontinuation of some staff and features in “Legends of Runeterra.”
It’s worth noting that Tencent, which acquired a majority stake in Riot Games in 2011, also holds a stake in another U.S. video game developer, Epic Games.
Riot Games is a game developer and publisher that’s famous for making popular online multiplayer games. It was founded in 2006 by Brandon Beck and Marc Merrill founded the company. The big breakthrough for Riot Games came with their blockbuster game, “League of Legends.” It quickly became a global sensation, making Riot Games a household name in the gaming world.