Tencent’s Riot Games Announces Workforce Reduction to Refocus Operations
Tencent Holdings Ltd.’s Riot Games has revealed its plan to streamline operations through a significant reduction in its workforce. The company will be laying off 530 employees, which accounts for approximately 11% of its staff. This strategic decision comes as Riot Games recognizes the need to address its lack of focus resulting from an overwhelming number of ongoing projects.
In an internal announcement shared via a blog post and a letter to its employees, Riot Games stated that the expansion of its employee count over the past few years had led to a loss of clarity in its strategic direction. The Chief Executive Officer, Dylan Jadeja, acknowledged the company’s engagement in ambitious endeavors but expressed regret over the dispersion of resources and diversion from its core objectives.
Previously, Riot Games, known for its popular game League of Legends, had centered its operations around this flagship title. However, with the introduction of new games and initiatives, the company found itself spread too thin. Consequently, Riot Games intends to refocus its efforts and reassess its priorities.
As part of this strategic alignment, Riot Games will be downsizing its Legends of Runeterra team due to the game’s underperformance. Additionally, the development work of Riot Forge, an internal game development subsidiary, will cease after the release of Bandle Tale: A League of Legends Story in February. While recognizing the accomplishments of Riot Forge’s partnership with independent developers, Riot Games emphasized the urgency to concentrate on its internal ambitious projects.
The decision to reduce the workforce at Riot Games reflects the broader trend in the video game industry. Unity Software Inc. and Amazon.com Inc.’s Twitch are among the companies that have also implemented job cuts in recent times. However, Riot Games aims to provide support to the affected employees during this transition. The company plans to offer a minimum of six months’ salary, a cash bonus, career assistance, and, if necessary, a personal computer.
By streamlining its operations, Riot Games anticipates achieving a more focused approach that will pave the way for significant progress in its ambitious ventures.
FAQ
The source of the article is from the blog windowsvistamagazine.es