Riot Games Cuts 11% Workforce
Riot Games, a subsidiary of Tencent Holdings based in Los Angeles, revealed intentions on Monday to lay off roughly 11 per cent of its global staff, or approximately 530 individuals. CEO Dylan Jadeja addressed the workers in a blog post, recognising the necessity for restructuring and detailing the company's future plans.
Riot Games, known for popular titles like "League of Legends," announced that layoffs would mostly affect teams outside of core development. This strategic approach comes as digital game producers struggle to expand their audiences due to consumer reluctance to buy expensive titles and a desire for fewer games in the face of rising inflation. Last year, Electronic Arts Inc. also reduced its employment by 6 per cent and gave up office space.
Riot Games will discontinue new game development under the "Riot Forge" project in order to focus on its live game portfolio, which includes "League of Legends," "Valorant," "Teamfight Tactics," and "Wild Rift." In addition, the firm will make changes to "Legends of Runeterra," such as personnel reductions and feature revisions.
Tencent, which has held a majority share in Riot Games since 2011, also has investments in Epic Games, a notable US video game producer. Riot Games' restructuring actions seek to optimise operations, increase profitability, and consolidate efforts to provide excellent gaming experiences to its dedicated user base.
