League of Legends, Valorant developer Riot Games to lay off about 11 percent of staff

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Tencent Holdings' Riot Games plans to lay off 530 employees, or about 11 percent of its workforce globally, the online gaming company said in a blog on Monday, including a letter to employees from CEO Dylan Jadeja.

Los Angeles-based Riot, whose popular titles include League of Legends, said teams outside of core development would see the biggest impact of the layoffs.

Digital game publishers are struggling to grow, as audiences shy away from purchasing expensive titles or play fewer games amid high inflation. Early last year, Electronic Arts cut 6 percent of its staff and shed some office space.

“Today, we are a company that doesn't have enough focus, and simply put, we have too many things going on. Some of the significant investments we've made are not paying off the way we should That was expected. Our costs have increased to the point where they are not sustainable,” Jadeja said in the letter.

According to a separate blog from Jadeja and co-founder Mark Merrill, the changes will allow Riot to focus on its portfolio of live games League of Legends, Valorant, Teamfight Tactics, and Wild Rift. The blog claimed that the studio has doubled its staff over the past few years and needs to focus on high-impact projects for long-term sustainability. “This isn't to please shareholders or hit quarterly earnings numbers – it's a necessity,” the blog said.

Riot will cease development of new games under “Riot Forge”, and remove some staff and features in Legends of Runeterra.

Tencent, which acquired a majority stake in Riot Games in 2011, also owns a stake in fellow American video game developer Epic Games.

© Thomson Reuters 2024


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