Riot Games To Downsize Workforce by 11%

Riot Games has decided to implement a significant restructuring step. In an official announcement on its website, the company is lessening the number of employees globally by approximately 530. This accounts for an 11% reduction in the total workforce, primarily affecting non-core development teams.

The company’s expansion since 2019 led to prolific growth and a diversification of experiences for its players. However, the company started losing its primary focus amidst the multitude of initiatives. Attempting to stabilize the situation, it tried implementing several corrective measures, like slowing and freezing hiring and emphasizing cost control. But with escalating costs and limited room for failure, these steps proved insufficient to save the core of the business.

Understanding the dire need for a strategic shift, Riot Games has concluded that further focalization and prioritization are necessary. This calls for a significant reduction in headcount, which was the company’s most significant area of investment. This decision does not stem from shareholder pressure or quarterly earnings targets. The primary motive is to protect the long-term sustainability of the company for its players.

The layoff process will be respectful and ensure that the leaving members find closure. The affected employees received an email notification of their status within an hour after the announcement was posted. Following this, they will be summoned for a meeting within 48 hours to discuss the next steps.

In light of the layoff, Riot Games is providing a comprehensive assistance package to the affected employees. This includes severance pay of a minimum of six months’ salary, a cash bonus equal to everyone’s individual 2023 Annual Performance Bonus, healthcare benefits, an additional $1,000 for future expenses, options to retain vested equity, a laptop for job hunting, job placement services, access to the Rioter Assistance Program, visa support, and continued access to their Riot email account after their departure for a limited time.

Regarding the company’s portfolio, Riot Games remains committed to its primary offerings like League PC, VALORANT, TFT, and Wild Rift. Some projects, however, will not continue as expected. The company will reshape Legends of Runeterra for sustainability due to underperformance. Riot Forge, a collaboration with external studios for game development, will be sunset after the release of Bandle Tale.

Riot Games plans to hold a product-focused RiotNow in early February to discuss its portfolio and plans for 2024. The company is deeply saddened by these circumstances but is committed to providing full support to those affected. For the remaining employees, Riot Games assures its vision and ambition will not falter. Despite the current challenges, the company is confident it will emerge stronger and continue to enhance player experiences in the future.