Riot Games, a 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 per cent, i.e., equal to 530 employees globally.
Meanwhile, this decision was announced through a blog post on Monday morning, followed by a letter to the staff from CEO Dylan Jadeja.
Riot Games, headquartered in Los Angeles, which is prominently known for its titles like “League of Legends” mentioned that the primary impact of the layoffs would be felt by the teams outside of the core development. On the contrary, this tough decision was made amid challenges like striving for growth, with audiences exhibiting reluctance to invest in expensive titles and opting for a more conservative approach in the face of escalating 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.”
With its shift, Riot Games continues to focus on existing popular games like League of Legends, Valorant, Teamfight Tactics, and “Wild Rift.
Talking about the blog post was made by CEO Dylan Jadeja and co-founder Marc Merril.
The move highlighted a string of 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, around the world fired more than 425,000 employees in 2022 and 2023, with more than 36,000 employees being sacked in India in the same time frame.
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