Riot Games has declared its intention to reduce its workforce by approximately 11%, effective immediately. CEO Dylan Jadeja conveyed this decision through two statements, one being a public relations announcement, followed by an internal email addressed to Rioters.
Both statements aim to elucidate the rationale behind the widespread layoffs and express regret for the necessity of such a decision. Riot Games emphasizes its efforts to mitigate the impact on individuals affected and to safeguard its public relations image.
Observing the social media posts of affected staff, it appears that creatives and members associated with “non-core product” areas have been significantly impacted.
This development aligns with a broader trend of mass layoffs seen in the technology and game development sectors over recent months.
Riot Games’ detailed release underscores the company’s intention to inform the public about severance packages, terms, conditions and the considerable efforts made to execute the layoffs as smoothly as possible under the circumstances.
Riot Games’ Shift Toward High-Impact Projects
The primary objective, as outlined in both statements, is to transition toward a “more sustainable future” by concentrating resources on high-impact projects. The layoffs affect a total of 530 employees, constituting approximately 11% of the company’s workforce.
The announcement begins by acknowledging the challenging reality faced by some individuals:
“Today, I’m sharing a decision we hoped we would never have to make at Riot. We’re changing some of the bets we’ve made and shifting how we work across the company to create focus and move us toward a more sustainable future.”
The release goes on to discuss a hiring surge and an expansive portfolio that has not yielded intended returns. The majority of the laid-off staff comes from creative projects and lore-building initiatives.
Riot Forge is slated for complete discontinuation, while Legends of Runeterra will primarily focus on the PvE aspects of the game.
Core operations of League of Legends, Valorant, TFT, and Wild Rift are less affected, though some creatives and esports personnel have been impacted.
The status of Project L and Project F remains somewhat uncertain, with the number of positions lost from those teams not specified.
Publicizing the Internal Email and PR Message
The entire internal email, framed as a transparency initiative, provides insights into Riot Games’ efforts to demonstrate that the company cares about the transition of affected employees. Both the email and public statement include repetitive quotes expressing regret and gratitude for the contributions of departing employees.
The comprehensive list of benefits for those affected encompasses severance pay equivalent to six months of salary, a cash bonus matching yearly APB targets, retention of health benefits, play fund, wellness fund for the severance period, career support, visa support during the transitional period, retention of access to the company laptop, Rioter Assistance Program, and Riot email access.
While Riot Games’ approach to handling the layoffs is commendable, the public presentation of supportive measures raises questions about the company’s motives, particularly in emphasizing care over financial considerations.
Reasons and Future Plans
The multifaceted reasons for these layoffs are attributed to various factors affecting the tech, gaming, and related industries.
Factors such as AI paranoia, legislative changes like Section 174, time-bound expected return on investment, and stringent key performance indicators on creative work have influenced companies to prioritize guaranteed returns and cost reduction over long-term development projects.
Niche and limited audience products have also been deprioritized.
Riot Games echoes these industry trends, prioritizing attention on core live games with established markets and direct monetization—League of Legends, VALORANT, Teamfight Tactics, and Wild Rift. Project L and Project F appear to be progressing in some capacity, but the exact impact on these teams is unclear.
Consumers may benefit from the influx of game developers, tech professionals, and creatives into the job market.
This surplus talent could potentially lead to a renaissance of unique content and fresh perspectives across various video game genres.
While the industry may experience a winter of challenges for major developers, consumers may enjoy the fruits of creatives exploring new and exciting projects.
The reduction of the workforce at Twitch, with a 35% cut, is the latest development in a series of industry-wide layoffs.
