(CTN News) – Riot Games, a subsidiary of Tencent Games and the developer behind the highly successful League of Legends and Valorant games, has announced major layoffs affecting 11% of its global workforce. Approximately 530 employees will be laid off as a result of this decision.
While Riot Games has long held a distinguished position in the dynamic world of online gaming, it now finds itself facing the challenges presented by a stagnant market.
Increased inflation rates and a prevailing tendency among gamers to spend less overall, opting either to limit their investments in new titles or steadfastly adhere to a handful of beloved classics, have adversely affected the entire industry.
In this regard, it is important to emphasize that Riot’s struggle is not an isolated incident.The same day, Electronic Arts announced that it would reduce its workforce by 6% in order to optimize its operations and reduce its office space footprint.
As companies attempt to adapt to the evolving gaming landscape in a fiscally conservative manner, these measures represent a broader trend reverberating throughout the industry.
During a letter addressed to Riot Games employees, CEO Dylan Jadeja revealed a significant internal reflection. As part of this introspection, he openly acknowledged two critical issues plaguing the organization: a loss of focus and an untenable rise in operating costs.
It is important to note that this restructuring initiative goes beyond simple cost-cutting measures. The game represents Riotconcerted effort to focus on its most successful titles, League of Legends, Valorant, Teamfight Tactics, and Wild Rift.
However, it is the decision to cease the development ofgames under Riot Games Forge and the deliberate cutback of certain features and personnel within Legends of illustrate the magnitude and depth of this strategic transformation.