ESL FACEIT, a major player in the esports industry, recently announced that they will be laying off approximately 15% of their global workforce. This decision comes after ESL and FACEIT merged in 2022 under Savvy Games Group, a merger valued at $1.5 billion. Despite expressing positive long-term sentiments about esports just months ago, the company now faces the reality of letting go of as many as 300 employees.
This round of layoffs marks one of the most significant workforce reductions in the esports industry in recent times. The gaming industry has been grappling with numerous layoffs over the past year, and esports is no exception to the challenges faced by the larger gaming sector.
‘Continues To Evolve’
In a memo shared with GamesBeat, co-CEOs Craig Levine and Niccolo Maisto explained:
‘To ensure ESL Faceit Group continues to evolve in a fast-paced market, we are planning to reduce the size of our team by roughly fifteen percent. This change is designed to support EFG’s sustainable growth ambitions and profitability. As co-CEOs, we did not make this decision lightly. We feel it’s important to take accountability for it, and provide clarity and transparency from the outset of the changes ahead.’
These layoffs are expected to pave the way for the ‘next phase’ of ESL FACEIT, enabling the organization to better serve its community and partners. Given the significant merger in 2022, the possibility of layoffs was always looming. With economic uncertainties affecting businesses globally, no organization, regardless of size, is immune to the prospect of downsizing.
Recent layoffs at PlayStation and Microsoft’s esports arm serve as reminders of the industry’s challenges. Despite the current climate, ESL FACEIT remains committed to its industry presence and aims to expand its reach. It’s a challenging and uncertain time for all involved, highlighting the ongoing turbulence in the esports landscape.
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