Riot Games, the developer of popular games such as “Valorant” and “League of Legends,” has announced a workforce reduction that will affect 530 employees, accounting for approximately 11 percent of their total workforce. Dylan Jadeja, CEO of Riot Games, informed the employees about the need for layoffs due to growing costs that are unsustainable.
A significant point in the announcement was the emphasis that the most affected teams would be those outside the main development department. Riot Games will focus more on their portfolio of live-play games, including popular titles such as “League of Legends,” “Valorant,” “Teamfight Tactics,” and “Wild Rift.”
The decline in game sales in the market and the reduced spending by many players are the primary reasons that led Riot Games to take this step. Lockdowns due to the pandemic have contributed to reduced revenues, and many players are trying to save more by waiting for sales or refraining from purchasing games on release day due to high inflation.
Workforce reduction in the gaming industry is becoming increasingly common. Riot Games joins other well-known companies such as Amazon, ByteDance (owner of TikTok), Niantic (creators of “Pokemon Go”), Epic Games (“Fortnite”), and Ubisoft (“Assassin’s Creed”) that have also announced layoffs recently.
Tencent, which acquired a majority stake in Riot Games in 2011, is also interested in other gaming companies, holding shares in Epic Games. The gaming industry’s landscape requires adaptation to the changing market and focusing on the most popular titles to maintain long-term success.
FAQ Section regarding the Announced Workforce Reduction at Riot Games:
The source of the article is from the blog maestropasta.cz