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Riot Games, the studio responsible for League of Legends and Valorant, has revealed that it has laid off 530 employees, amounting to approximately 11% of its workforce.
This announcement was made through a Riot Games blog post, where A. Dylan Jadeja, the CEO, addressed the situation and outlined the reasons behind the decision.
According to Jadeja, the layoffs are a consequence of the company’s 2019 decision to diversify its portfolio by creating “new experiences.”
This expansion led to a significant increase in the workforce within a short span, resulting in the need for restructuring. Jadeja notes that the studio had become “a company without a sharp enough focus,” with some of the “significant investments” not yielding the expected returns, making the costs unsustainable and jeopardizing the core of their business.
Efforts were made to avoid layoffs, including assigning employees to different projects, slowing down hiring, and implementing hiring freezes. However, the necessity for long-term sustainability led to the difficult decision to let go of a portion of the workforce.
The impact of the layoffs on employees’ lives and the studio’s culture is acknowledged by Jadeja, emphasizing that the decision was made out of necessity and not to meet short-term financial goals. Riot Games aims to maintain a long-term focus for players.
Affected employees will be notified via email and have the opportunity to meet with their Senior Leader and People team partner to discuss the next steps within 48 hours. The entire process is expected to take several weeks to complete.
Employees who are not transitioning into new roles will receive severance pay, a cash bonus, health benefits, a Play Fund, a Wellness Fund, equity, a computer, career support, access to the Rioter Assistance Program, Visa support, and Riot email access.
While reaffirming the company’s commitment to all its games, Jadeja acknowledges that the layoffs will impact some titles, such as Legends of Runeterra. Going forward, Riot Games plans to reduce its team and shift its focus to the “Path of Champions” PvE game mode. Additionally, Riot Forge will be sunsetted after the release of Bandle Tale.
In another blog post, Riot Games assured the community that its vision for League of Legends, Valorant, Teamfight Tactics, and Wild Rift remains ambitious. The studio will prioritize these teams to address community requests and create more content. Projects like Project L, Arcane Season 2, and other unannounced endeavors are still in progress.
This announcement follows a trend of layoffs in the industry, with Unity experiencing significant layoffs affecting 25% of its workforce and indie publisher Thunderful announcing a 20% reduction in staff.
