Tencent Gaming announces layoffs to streamline operations and drive strategic focus

Tencent Holdings Ltd.’s gaming subsidiary, Riot Games, has announced a workforce reduction as part of its efforts to streamline operations and refocus its strategic direction. This decision will see 530 employees, accounting for around 11% of the company’s staff, being laid off.

Recognizing the need to address the lack of clarity resulting from numerous ongoing projects, Riot Games has made this strategic move. An internal announcement shared via a blog post and a letter to employees highlighted the company’s expansion in recent years, which had led to a loss of strategic direction. CEO Dylan Jadeja expressed regret over the dispersion of resources and diversion from core objectives, stating that the company’s engagement in ambitious endeavors hindered its focus.

Riot Games, renowned for its popular game League of Legends, had previously centered its operations around this flagship title. However, with the introduction of new games and initiatives, the company found itself stretched too thin. Consequently, Riot Games aims to refocus its efforts and reassess its priorities.

As part of this strategic realignment, Riot Games will be downsizing its Legends of Runeterra team due to 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 acknowledging the successful collaborations between Riot Forge and independent developers, Riot Games emphasized the urgency to concentrate on its internal ambitious projects.

The decision to reduce the workforce at Riot Games aligns with the broader trend in the video game industry, as other companies such as Unity Software Inc. and Amazon.com Inc.’s Twitch have also implemented job cuts recently. Nevertheless, Riot Games is committed to supporting the affected employees during this transition. The company plans to offer a minimum of six months’ salary, a cash bonus, career assistance, and, if needed, a personal computer.

Through streamlining its operations, Riot Games aims to achieve a more focused approach that will drive significant progress in its ambitious ventures.

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The source of the article is from the blog procarsrl.com.ar