29 Jan 2024

Riot Games fires more than 500 employees and announces changes

The renowned game developer Riot Gamesresponsible for popular titles such as League of Legends e Valuing, announced on Monday night (22) a wave of layoffs. A company laid off 530 employeesequivalent to 11% of its workforce globally.

In an official statement, the company highlighted that the measure was taken due to unsustainable growth in costs. The company said the action is a worrying trend affecting several companies in the esports market.

“For most of our history, we have managed to avoid days like this, but this decision is critical to Riot’s future. This is not to satisfy shareholders or to achieve a quarterly profit number – it is a necessity,” the company stated in a statement. communicated.

With 20 offices spread across the world, including one in São Paulo, Riot does not make clear the number of layoffs per country, or how many were affected in Brazil.Source: New York Times

Riot Games stated that the cuts aim to focus efforts on areas that significantly impact the player experience. The company admitted that over the years, the unbridled expansion of projects without sufficient criteria resulted in rising costs, and mass layoffs became inevitable to ensure future sustainability.

Impact on gaming: Riot Games reduces Legends of Runeterra teams and closes Riot Forge

While popular games like League of Legends, Valorant, Teamfight Tactics and Wild Rift remain Riot’s core focus, Legends of Runeterra will see a significant staff reduction. Additionally, Riot Forge, an initiative created in 2019 to support independent developers, will be discontinued. The latest title released by her, “Bandle Tale: A League of Legends Story”, marks the end of this experimental phase.

Crisis in the Games and Esports sector

Last week, the Brazilian League of Legends Championship (CBLOL 2024) already made its debut.Fonte:  Riot Games

The games and esports industry is facing a crisis, reflecting the trend of big tech. More than 3,800 layoffs were recorded, including large platforms like Twitch, which laid off 35% of its workforce at the end of last year.

Employees involved in the esports operations of the company’s games, including league management and development, are also among those affected by the layoffs.

What is the future of Riot Games?

Produced by Riot Games and Riot Forge, Project L is a 2v2 fighting game featuring League of Legends champions, with no release date scheduled.Produced by Riot Games and Riot Forge, Project L is a 2v2 fighting game featuring League of Legends champions, with no release date scheduled.Fonte:  Riot Games

The decision by Riot Games, part of Tencent since 2011, represents a response to financial challenges and a strategic reassessment in the face of rising costs and economic challenges. In a statement to employees, the North American company said that certain “significant investments” have not yielded returns as expected.

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