Riot Games, a majority-owned subsidiary of Tencent Holdings, has joined the big-tech layoffs, asking a certain number of employees to go to reduce costs. Reportedly, it has revealed plans to reduce the workforce by 11 percent, This equates to approximately 530 employees globally.
The company announced this decision through a blog post on Monday morning, followed by a letter to the staff from CEO Dylan Jadeja.
Riot Games, headquartered in Los Angeles and widely known for titles like “League of Legends,” stated that the layoffs would primarily affect teams outside the core development. The company made this tough decision amid challenges such as striving for growth, as audiences have shown reluctance to invest in expensive titles and have adopted a more conservative approach due to rising inflation. Besides, recently, TikTok responded to similar challenges; however, this company let go only 60 of its employees.
With his decision, Jadeja focused on the need for a more goof approach within the company stating “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.”
Riot Games is shifting its focus to popular games like League of Legends, Valorant, Teamfight Tactics, and Wild Rift.
CEO Dylan Jadeja and co-founder Marc Merrill made the blog post announcement.
The move highlighted job cuts from other tech companies this year, including Google, Amazon, Unity, TikTok, and Discord.
Not only this, but recently Google’s CEO Sundar Pichai braced its employees to get ready for more layoffs this year.
Tech companies, including startups, fired over 425,000 employees globally in 2022 and 2023. In India, more than 36,000 employees lost their jobs.
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