Tencent’s (OTCPK:TCEHY) (OTCPK:TCTZF) Riot Games is laying off about 530 employees globally, representing around 11% of its workforce.
Los Angeles-based Riot, whose popular gaming titles include League of Legends, said the biggest impact would be to the teams outside of core development.
“This isn’t to appease shareholders or to hit a quarterly earnings number—it’s a necessity. Over the past few years, as Riot more than doubled in headcount, we spread our efforts across more and more projects without sharp enough razors to decide what players needed most,” said CEO Dylan Jadeja and Co-Founder Marc Merrill in a blog post on Tuesday.
The two added that the company’s commitment to its core live games — League of Legends, VALORANT, Teamfight Tactics, and Wild Rift — is more ambitious than ever, and they are prioritizing these teams.
The company’s strategy will more tightly integrate esports, music, and entertainment with its games, the two noted.
Riot is ending new game development under Riot Forge after the upcoming release of Bandle Tale: A League of Legends Story. The company is also reducing the size of its team in Legends of Runeterra and renewing its focus on The Path of Champions.
“Today, we’re a company without a sharp enough focus, and simply put, we have too many things underway. Some of the significant investments we’ve made aren’t paying off the way we expected them to. Our costs have grown to the point where they’re unsustainable, and we’ve left ourselves with no room for experimentation or failure – which is vital to a creative company like ours. All of this puts the core of our business at risk,” said Jadeja in a separate blog post.
The tech industry saw several mega cap companies undertaking layoffs last year, and even 2024 has started on a similar note.
Earlier this month, Alphabet’s (GOOG) (GOOGL) Google noted it was laying off hundreds of staff working across different teams and the company is likely to cut even more jobs. Unity Software (U), Amazon (AMZN) and Xerox (XRX) said also getting ready to cut several jobs.