Riot Games, the publisher of League of Legends, recently announced a reduction in its workforce, resulting in approximately 530 job cuts, which represents 11% of its staff. This decision is part of an industry-wide trend where major game developers and tech firms are restructuring and downsizing specific divisions in response to increasing expenses and as part of their cost-cutting strategies.
The company issued a company-wide communication, stating “We’re making changes to our strategic direction and restructuring our operations in order to focus on long-term sustainability. As a result, we will be eliminating around 530 positions globally, which is approximately 11% of our workforce, with the most significant impact in teams outside of core development.”
CEO Dylan Jadeja expressed the need to refocus the business on aspects that provide the most player value, and although this means reducing headcount, the company is committed to providing affected employees with a minimum of six months severance pay, with longer-tenured employees receiving additional benefits.
A Shift in Priorities
Riot’s new strategy involves concentrating on its core live games including League of Legends, Valorant, Teamfight Tactics, and Wild Rift, as well as associated esports and events. Additionally, the company is making significant progress on the development of the Project L 2D fighting game and preparing for the release of the second season of the Arcane TV show for Netflix in November.
However, the job cuts have impacted certain projects, such as the game Legends of Runeterra, which has not met performance expectations. The company is also reassigning the team responsible for the game to focus on the PvE game mode. Furthermore, Riot Forge, a publishing label introduced in 2019 to collaborate with smaller studios on League-related games, will close following the release of Bandle Tale: A League of Legends Story after having released six titles, including the Netflix mobile exclusive Hextech Mayhem.
