Riot Games, the acclaimed developer behind titles such as League of Legends and Valorant, has announced a significant layoff of 530 employees, which equates to around 11% of its workforce. The news came from a blog post written by A. Dylan Jadeja, the CEO of Riot Games, who cited the company’s need to make changes in order to sustain a long-term focus and maintain the core of its business.
According to Jadeja, the layoffs are a result of the company’s decision to create “new experiences” and broaden its portfolio, which led to significant investments that ultimately didn’t pay off as expected. This, combined with unsustainable costs and a lack of room for experimentation or failure, led to the necessity of the layoffs. The affected employees will receive severance pay, cash bonus, health benefits, and other forms of support from the company.
The decision to lay off such a large number of employees will undoubtedly have a significant impact on the gaming industry. Riot Games, which is still invested in all its games and committed to esports and entertainment, will be shifting its focus and reducing its team for certain projects. This includes a shift in focus for Legends of Runeterra to the “Path of Champions” PvE game mode, as well as the sunsetting of Riot Forge after the release of Bandle Tale.
In response to the layoffs at Riot Games, there has been a growing concern over the increasing trend of layoffs within the gaming industry. This comes in the wake of similar layoffs at other companies such as Unity and indie publisher Thunderful. Critics argue that these layoffs could have a negative impact on the overall creativity and innovation within the industry, as well as the well-being of its workforce.
In summary, Riot Games’ decision to lay off 530 employees has raised significant concerns about the future of the gaming industry and the well-being of its workforce. As the industry continues to grapple with the impact of these layoffs, it remains to be seen how companies will work to address these concerns and move forward in a sustainable and ethical manner.