Why Is Riot Games Laying Off 500 People?

Riot Games is known for trading popular games such as League of Legends, Valorant, Teamfight Tactics and Wild Rift. However, the company has faced some challenges recently. Riot Games, which started new games and projects to expand the universe of League of Legends in 2019, may achieve the success we expect. For this reason, the company decided to lay off more than 500 employees.

Dylan Jadeja, CEO of Riot Games, stated in a note to users that they did not provide a return on some investments, and in this case, the financial situation of the company would develop negatively. Jadeja said that those who will be laid off will submit their comments within 48 hours and compensation will be paid to them. The people to be laid off make up 11 percent of Riot Games' global workforce.

In addition to layoffs, Riot Games decided to cancel or downsize some of its games and projects. One of these was the publishing brand Riot Forge, which strives to expand the League of Legends universe through independent developer partnerships. Riot Forge will be shutting down following Bandle Tale: A League of Legends Story, which will be released on February 21 after six games have been released. Another canceled project was Legends of Runeterra, a digital card game that emerged in 2020 and showed the expected interest. This game development team will be downsized and will focus on single-player functions.

With these decisions, Riot Games plans to focus on games that can host e-sports competitions. The company's important games, League of Legends, Valorant, Teamfight Tactics and Wild Rift, constitute the company's sources of income. Additionally, a 2D fighting game project called Project L continues. The second season of the Arcane series, set in the League of Legends universe, will be released on Netflix in November.

Riot Games has become the latest company to join the fallout from the gaming industry. After the pandemic, gaming companies parted ways with thousands of employees to reduce costs and increase efficiency. It remains to be seen what impact Riot Games' decision will have on both employees and players.