Riot Games is probably one of the biggest studios in the gaming space right now. The company has launched several successful titles such as League of Legends or Valorant, and also kept them relevant with constant updates and new content year after year.
On top of that, the company brings in a crazy amount of spectators with the esports scene of the two games mentioned above. However, that wasn't enough to avoid a big round of layoffs to help make the business more sustainable.
More layoffs
In a recent blog post, Riot Games announced that they are cutting off 530 roles across their different areas globally. This represents around 11% of their entire workforce, revealing how significant this round of layoffs is.
"This isn’t to appease shareholders or to hit a quarterly earnings number—it’s a necessity", expressed the company. A letter was sent to all the people who are being laid off and it details all the amenities the company is going to provide/offer.
Severance pay for a minimum of 6 months, career support to find a new job, and even visa support are among the things listed. Employees affected aren't even required to work at their respective offices this week, with home from work being offered to help them process the news.
Although Riot seems to be sensitive about the subject, the news only demonstrates that no company is safe from this period of recession that the industry is going through. Most people believe that this is due to the amount of overhiring done during the COVID pandemic, where the gaming space enjoyed some highs never seen before since people were playing more.
Next steps at Riot
With their reduced staff, Riot assures that their main focus moving forward is doubling down on their games, including those that haven't yet proven to be sustainable like Legend of Runeterra.
The developer explained that the game has experienced many challenges, with the production costs being higher than the revenue it brings. That is why they are reducing the size of the development team and refocusing on supporting The Path of Champions, which will allow them to work more on the PvE aspects of the title.
Aside from that, the studio is also still at work on new experiences like the previously announced fighting game, Project L (not the final title), or the second season of the Arcane animated series. The work on their core live titles, such as League of Legends, Valorant, or Teamfight Tactics, will remain the priority, meaning that their content output probably won't be affected.
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