Riot Games Announces Workforce Reduction and Shift in Focus

by Annabelle Stephenson
in *CH, *DE, *FR, *IT, *UA, News, xET, xSK
on 23 January 2024

Riot Games to Streamline Operations and Focus on Existing Portfolio

Riot Games, a subsidiary of Tencent Holdings, has unveiled its plans to reduce its workforce by approximately 11 percent, affecting 530 employees worldwide. The decision was communicated through a blog post on Monday, along with a letter from CEO Dylan Jadeja addressed to the company’s employees.

Headquartered in Los Angeles, Riot Games is renowned for popular titles like “League of Legends.” It has been emphasized that the main impact of the layoffs will be felt by teams outside of the core development department. This move comes at a time when digital game publishers are facing challenges in pursuit of growth, as the audience shows reluctance to invest in expensive titles, instead opting for a more conservative approach in the face of rising inflation. Last year, Electronic Arts responded to similar challenges by reducing its workforce by 6 percent and closing offices.

Jadeja acknowledged the need for a more focused approach within the company, stating, “Today, we are a company without a clear purpose, and we simply have too many things in progress. Some of our significant investments are not yielding the expected results. Our costs have risen to a point where they are unsustainable.”

As a strategic shift, Riot Games aims to concentrate on its existing live game portfolio, including “League of Legends,” “Valorant,” “Teamfight Tactics,” and “Wild Rift.” This decision was outlined in a separate blog post authored by Jadeja and co-founder Marc Merrill.

Further adjustments will involve discontinuing the development of new games under the “Riot Forge” initiative, as well as implementing workforce reductions and role consolidations related to “Legends of Runeterra.” Tencent, which acquired a majority stake in Riot Games in 2011, also holds shares in other prominent American video game developers, such as Epic Games.

Frequently Asked Questions

1. Which company announced plans for workforce reduction?
Answer: Riot Games, a subsidiary of Tencent Holdings.

2. By what percentage does the company intend to reduce its workforce?
Answer: The company plans to reduce its workforce by approximately 11 percent.

3. How many employees will be affected by the layoffs?
Answer: The decision translates to 530 employees being laid off worldwide.

4. Where is Riot Games headquartered?
Answer: Riot Games is headquartered in Los Angeles.

5. Which popular titles are Riot Games known for?
Answer: Riot Games is known for popular titles such as “League of Legends,” “Valorant,” “Teamfight Tactics,” and “Wild Rift.”

6. Which other teams within the company will be most impacted by the layoffs?
Answer: Teams outside of the core development department will be the most affected by the layoffs.

Definitions:

– Tencent Holdings: A Chinese technological and investment company that owns Riot Games.
– League of Legends: A popular multiplayer online battle arena (MOBA) computer game produced by Riot Games.
– Inflation: The increase in the overall price level of goods and services in the economy.
– Electronic Arts: An American company engaged in the production and publishing of computer games.
– Jadeja and Merrill: Dylan Jadeja and Marc Merrill, executives at Riot Games.

Riot Games Announces Workforce Reduction and Shift in Focus