California, United States – Riot Games, an American video game company, has announced they will cut off 11% of their staff around the world as they make critical adjustments for the future of the company.
In a company announcement, CEO of Riot Games Dylan Jadeja and co-founder and chief product officer Marc Merrill stated that they will be eliminating around 530 roles globally to refocus on fewer, high-impact projects that will sustain them moving forward while cutting investments on those projects that do not make any more impact.
Employees outside the Riot’s core development teams are among those who will be affected most by the massive layoffs.
Riot also disclosed the email sent to their employees worldwide. In the email, Dylan apologised to the employees and took accountability for the sudden changes that the company is undergoing at the moment.
“Over the past several months, we’ve tried to alter our trajectory in many different ways. We asked leaders to make tradeoffs in the things their teams are working on. We rolled out hiring slowdowns and, in some cases, hiring freezes. We put an emphasis on controlling costs while strengthening our revenue growth. All of which has without a doubt been tough for our teams,” wrote Dylan in the email.
The email also included the fees and other support that Riot will offer to those whose roles are included in the layoffs.
However, aside from cutting staff, Riot Games also announced they would make changes to the games they’ve been developing so far.
The company will be placing their commitment on their core live games, which are League of Legends, Valorant, Teamfight Tactics, and Wild Rift. Therefore, prioritise teams that can focus on the content, features, and updates that directly respond to these games.
However, Riot also decided to end the development of Riot Forge to refocus their efforts on the ambitious projects underway internally at the company.
They will also reduce the team designated for the development of their Legends of Runeterra game and instead shift their focus to The Path of Champions. The company deems this necessary as LoR has faced financial challenges since launch and the revenue it generates does not cover the cost of its development.
According to Dylan and Marc, “Our strategy moving forward is clear: we’re honing in on what we do best and what resonates most with you. Every endeavour, from development to storytelling to competition, will be crafted to deliver meaningful, memorable experiences with games at the centre.”
They added, “While change can bring uncertainty, it also presents opportunities for growth and innovation. We’re grateful for your ongoing support; nothing Riot has ever created would be possible without you. Your passion and engagement inspire us every day, and we’re excited to continue this journey together.”
The massive layoffs at Riot Games follow the line of widespread retrenchments in large companies and corporations in 2024. Alibaba Group’s Lazada also opened the year with sudden staff reductions in its offices in Southeast Asia, followed by multinational consumer goods company Unilever, which also announced a slew of layoffs in its Singapore office.
