January 23, 2024
Riot Games, the developer behind the immensely popular video game League of Legends, has announced a significant restructuring move that involves laying off 11% of its workforce. This decision translates to the loss of 530 jobs worldwide, as part of the company's efforts to refocus on fewer, high-impact projects and ensure a sustainable future.
This move by Riot Games is reflective of a broader trend in the video game industry, which has seen an increasing number of layoffs since the previous year. Over 9,000 workers have been affected by this trend across the sector. According to a survey conducted by the Game Developers Conference (GDC), 56% of employees in the industry anticipate more layoffs as companies adjust to post-pandemic realities.
The layoffs at Riot Games were communicated to the employees by CEO Dylan Jadeja, who cited the company's expansion in 2019, including branching into new games and media, as a significant investment that did not meet expectations. Jadeja assured that impacted employees would be provided with at least six months of severance pay and other benefits, depending on their tenure with the company.
These job cuts at Riot Games are a part of a larger pattern observed in the tech industry. For example, Google began 2024 with layoffs affecting over 1,000 employees in various divisions, including hardware and engineering, as part of a broader restructuring plan. Similarly, YouTube, a subsidiary of Google, announced around 100 job cuts focusing on sectors like music, sports, media, film, and TV. Amazon also revealed job cuts in its Prime Video and Amazon MGM Studios divisions, aiming to streamline operations.
Furthermore, Meta, the parent company of Facebook, Instagram, and WhatsApp, confirmed the reduction of 60 employees, mainly in technical program management. This move is part of a larger effort to simplify the organization and focus on core priorities, including the development of the metaverse.
The layoffs across these major companies highlight the challenges and shifts in the tech and gaming industries, as they navigate through post-pandemic market conditions, rising competition, and evolving consumer preferences.
