Riot Games confirmed their plans to implement an immediate workforce reduction of about 11%. CEO Dylan Jadeja released two statements on the Riot Games website: a public PR statement and an internal email sent to Rioters.
Both statements aim to explain the reasons for the mass layoffs, express regret for the decision, and highlight the company’s efforts to minimize the impact of these layoffs.
Based on social media posts, the most affected staff were creatives and non-core product members.
Credit: Riot Games
This follows a trend of mass layoffs in the tech and game development sector in recent months. The detailed release aims to inform the public about severance packages, terms, conditions, and the efforts made to ease the process given the circumstances.
Riot Games to Focus on High-Impact Projects
The company’s goal, as stated in both statements, is to transition to a more sustainable future by focusing resources on high-impact projects. Around 530 employees have been affected by the layoffs, representing approximately 11% of the company’s workforce.
Today, I’m sharing a decision we hoped we would never have to make at Riot… Around 530 roles globally, which represents around 11% of our workforce, with the biggest impact to teams outside of core development.
The statement also highlights a hiring boom and an expansive portfolio not yielding the intended returns. The majority of the laid-off staff were from creative projects and lore building initiatives.
Credit: Riot Games
Rolling out the PR nugget and internal email publicly
The internal email, positioned as a transparency effort, offers insight into Riot Games’ focus on supporting employees in their transition. Both the email and public statement contain repeated quotes expressing apologies and a commitment to support those affected.
The enumerated benefits for affected employees include severance pay, cash bonuses, retention of health benefits, career support, visa support, and access to company resources during the transitional period.
Riot Games’ approach to handling layoffs, while commendable, appears to be heavily emphasized in their public communications, underscoring their care for the affected employees and the company’s commitment to support them.
Why this is happening and the path forward
The reasons for the layoffs are complex and reflect broader industry trends, including concerns over AI, legislation, ROI expectations, and KPIs for creative work. Riot Games intends to focus on their core live games and established products to maintain and increase market share.
Ultimately, Riot will prioritize what they know works and strives to elevate or maintain it.
However, there is a potential upside for consumers, as the layoffs may lead to an influx of game developers, tech professionals, and creatives entering the market. This could result in a resurgence of unique content and fresh perspectives in various video game genres, offering consumers a broader array of innovative projects.
While the industry may face challenges, the influx of creative talent may provide consumers with exciting new projects and experiences in the long run.
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