Riot Games Announces Layoffs of 530 Employees Amid Industry-Wide Job Cuts

Riot Games Announces Layoffs of 530 Employees Amid Industry-Wide Job Cuts

Riot Games, the developer behind the popular League of Legends, has announced significant layoffs, affecting approximately 530 employees, or about 11% of its global workforce. This move comes as the company refocuses its efforts on "fewer, high-impact projects" for a more sustainable future.

In a candid statement on its website, Riot Games, which had previously laid off 46 staff in January last year, emphasized that the decision was crucial for the company's future and not merely a measure to satisfy shareholders or achieve quarterly earnings targets. CEO Dylan Jadeja elaborated on the company's challenges since 2019, citing rapid expansion and a lack of focus as key issues. He noted that the company's broad range of projects and increased costs had limited room for experimentation, vital for a creative firm like Riot.

The layoffs primarily impact teams outside of core game development, including the shutdown of RiotForge and the downsizing of Legends of Runeterra team, due to underperformance. Riot is prioritizing its main titles - League of Legends, Valorant, Teamfight Tactics, and Wild Rift - aligning them more closely with esports, music, and entertainment.

Affected employees will receive comprehensive severance packages, including six months' pay, full annual bonuses, health benefits, and additional support.

Riot's announcement is part of a troubling trend in the gaming industry, with over 9,500 job cuts in 2023 and continued layoffs in 2024, including major cuts at companies like Unity, Behaviour Interactive, and Twitch. The industry grapples with these changes as it heads into another uncertain year.

Source: Eurogamer