The Evolution of Riot Games: A Shift towards a Sustainable Future
Riot Games, the renowned game development company, recently announced a major strategic shift, aiming to focus on a reduced number of high-impact projects to achieve a more sustainable future. Unfortunately, this transition has resulted in a significant number of layoffs. Approximately 530 employees, accounting for 11% of the company’s workforce, have been let go.
In a letter sent to the employees, Riot CEO Dylan Jadeja acknowledged the risks the company has taken since 2019, expanding as a multi-game company and offering diverse experiences. However, he mentioned that there are currently “too many things in progress,” and some of these decisions have not yielded the expected results.
According to Jadeja, previous measures such as hiring freezes and other cost-controlling measures have proved inadequate. As a result, these layoffs are a necessary step for Riot. They are not driven by a desire to please shareholders or achieve quarterly profit goals.
“Our costs have reached an unsustainable level, and we have not left ourselves enough room for experimentation or failure – something essential for a creative company like ours,” stated Jadeja. “All of this calls into question the core of our business.”
In addition to the layoffs, Riot Games is making several internal changes. The development team for the card game Legends of Runeterra, based on League of Legends, will be downsized, with a stronger emphasis on the PvE mode, Path of Champions.
Riot also plans to conclude the Riot Forge program, which was launched in 2019 to create single-player games based on League of Legends in collaboration with external studios. This program previously resulted in games such as Ruined King and Mageseeker. Additionally, the time has come for the release of Bandle Tale, a narrative-driven RPG game.
Riot has informed players that its new strategy involves a “tight integration of esports, music, and entertainment” with their games.
All the affected Riot employees will receive a favorable severance package, which the company has publicly disclosed. This package includes a minimum of six months’ severance pay, a bonus based on the annual performance bonus target for 2023, healthcare coverage, additional expense reimbursements previously covered by the Play Fund and Riot’s Wellness Fund, access to job placement services for six months, support for employees with work visas, and other benefits such as providing laptops for those relying on company equipment.
It is worth mentioning that Google offered a similar package to laid-off employees last year, although the minimum severance was 16 weeks, not six months like Riot’s.
These 530 laid-off Riot employees join hundreds of others in the gaming industry who have lost their jobs in recent months. Layoffs have become a distinct trend in the gaming market in 2023 and 2024. Last week, Behaviour Interactive and CI Games also announced layoffs, and this week we learned that Piranha Bytes is at risk of closure.
Frequently Asked Questions
- Why did Riot Games lay off employees?
Riot Games made the decision to lay off employees in order to focus on a reduced number of high-impact projects and achieve a more sustainable future. The layoffs were necessary due to rising costs and insufficient previous cost-controlling measures. - How many employees were laid off from Riot Games?
Approximately 530 employees, which represents 11% of the company’s workforce, were laid off from Riot Games. - What changes will take place at Riot Games?
Riot Games is implementing several internal changes. The development team for the card game Legends of Runeterra will be downsized, and the focus will shift to the PvE mode, Path of Champions. Additionally, Riot intends to conclude the Riot Forge program, which involved creating single-player games based on League of Legends. - What benefits will the laid-off Riot Games employees receive?
Laid-off Riot employees will receive a favorable severance package, including a minimum of six months’ severance pay, a bonus based on the annual performance bonus target for 2023, healthcare coverage, additional expense reimbursements, access to job placement services for six months, and other benefits. - What is Riot Games’ plan for its new strategy?
Riot’s new strategy involves a “tight integration of esports, music, and entertainment” with their games. - Which other companies in the gaming industry have also announced layoffs?
In recent months, many companies in the gaming industry have announced layoffs, including Behaviour Interactive, CI Games, and Piranha Bytes.
Sources:
– Riot Games’ official website: https://www.riotgames.com/
– League of Legends: https://www.leagueoflegends.com/
– Legends of Runeterra: https://playruneterra.com/
The source of the article is from the blog foodnext.nl