Riot Games, the developer of the cult game “League of Legends,” has announced significant staff reductions. This decision, which will affect approximately 11% of the company’s global workforce, means that about 530 employees will face an uncertain future. The news has shocked the gaming community, drawing attention to the challenges that even successful digital game publishers face in the current economic climate.
11 percent – approximately 530 employees of the organization
Riot Games, a subsidiary of Tencent Holdings, has been a prominent player in the online gaming arena. However, the company is now struggling with the harsh realities of a stagnant market. High inflation rates and a tendency among players to limit their spending on new games or to stick with a few favorites have hit the industry hard. Riot is not alone in this struggle: last year, Electronic Arts cut its workforce by 6% and reduced the number of office spaces, indicating a broader trend of belt-tightening across the sector.
CEO Dylan Juday’s letter to employees revealed a critical introspection within Riot. He acknowledged the company’s loss of focus and unsustainable cost growth. This admission is a rare glimpse into the inner workings of a major gaming company that is often perceived by its fans as invincible.
Restructuring is not just about downsizing. Riot aims to focus on its most successful games: “League of Legends, Valorant, Teamfight Tactics, and Wild Rift. However, it is the cessation of new game development at Riot Forge and the reduction of certain functions and staff at Legends of Runeterra that emphasizes the depth of this strategic shift.
Riot’s turnaround comes amidst Tencent’s wider involvement in the gaming industry, including stakes in other US gaming giants such as Epic Games. This reshuffle at Riot Games could be a harbinger of changes we may see across the industry as companies try to adapt to the changing gaming landscape and economic pressures.
