League of Legends developer Riot Games announces significant layoffs

by Annabelle Stephenson
in *EN, Action, News-PL, xRO
on 23 stycznia 2024

Riot Games, the developer behind the popular game League of Legends, has made the decision to lay off approximately 11 percent of its total global workforce. This amounts to around 530 employees losing their jobs. The company states that this restructuring is necessary as it refocuses its efforts on „fewer, high-impact projects to move us toward a more sustainable future.”

CEO Dylan Jadeja explained that Riot Games had made several ambitious investments since 2019, aiming to enhance the player experience and expand their portfolio. However, these investments have not yielded the expected results, leading to financial unsustainability. The company now finds itself at a point where it lacks a clear focus and has too many endeavors underway, putting the core business at risk.

To address these challenges, Riot Games has implemented various measures in recent months, such as tradeoffs in team priorities, hiring slowdowns, and cost control efforts. Yet, it has become evident that these actions are not sufficient. Therefore, the company has concluded that it needs to make changes in its headcount, resulting in the layoffs.

The layoffs will primarily impact teams outside of core development, and Riot will also be shutting down the RiotForge initiative, which involved collaboration with indie studios. Additionally, the size of the Legends of Runeterra team will be reduced. This decision comes as the game has not met expectations, and subsidizing its development with revenue from other games is no longer considered viable. Instead, Riot Games will focus on expanding Runeterra’s Path of Champions PvE game mode.

Riot Games is prioritizing its major titles, including League of Legends, Valorant, Teamfight Tactics, and Wild Rift. The company plans to integrate esports, music, and entertainment more tightly with its games, aiming to provide players with enhanced content, features, and updates.

Employees affected by the layoffs will receive severance pay, cash bonuses, continued health benefits, and various forms of support to assist them during this difficult period.

As game developers across the industry have faced significant layoffs in recent times, Riot Games’ decision reflects the broader challenges faced by the gaming industry as it strives for sustainability and success.

FAQ:

1. What is the reason for Riot Games laying off employees?
Riot Games is laying off employees in order to refocus its efforts on fewer, high-impact projects and move towards a more sustainable future.

2. How many employees will be affected by the layoffs?
Approximately 11 percent of Riot Games’ total global workforce, which amounts to around 530 employees, will be laid off.

3. Why did Riot Games decide to make these layoffs?
Riot Games had made ambitious investments to enhance the player experience and expand their portfolio, but these investments did not yield the expected results, leading to financial unsustainability. The company also had too many endeavors underway, which put the core business at risk.

4. What measures did Riot Games implement before deciding to lay off employees?
Riot Games implemented various measures such as tradeoffs in team priorities, hiring slowdowns, and cost control efforts. However, these actions were not sufficient to address the challenges the company was facing.

5. Which teams will be primarily impacted by the layoffs?
The layoffs will primarily impact teams outside of core development. The RiotForge initiative, which involved collaboration with indie studios, will also be shut down. Additionally, the size of the Legends of Runeterra team will be reduced.

6. What games will Riot Games prioritize?
Riot Games will prioritize its major titles, including League of Legends, Valorant, Teamfight Tactics, and Wild Rift. The company plans to integrate esports, music, and entertainment more tightly with its games to provide players with enhanced content, features, and updates.

7. What support will be provided to employees affected by the layoffs?
Employees affected by the layoffs will receive severance pay, cash bonuses, continued health benefits, and various forms of support to assist them during this difficult period.

Definitions:
– Headcount: The total number of employees in a company or organization.
– Esports: Competitive video gaming at a professional level.
– Indie studios: Small and independent game development studios.