Riot Games Announces Major Layoffs and Ends Riot Forge
Riot Games, known for popular titles like League of Legends and Valorant, has recently announced a significant reduction in its workforce, laying off 530 employees, which is about 11% of its total staff. This decision was shared in a blog post by the company's CEO, A. Dylan Jadeja.
Jadeja explained that the layoffs were a result of the company's rapid expansion since 2019, when it aimed to create new experiences and broaden its portfolio. This growth led to an unsustainable increase in costs and a lack of focus, which Jadeja admits has put the core business at risk. The company had tried other measures like slowing hiring and internal transfers, but these were not enough to avoid layoffs.
The affected employees will receive several benefits, including severance pay, cash bonuses, health benefits, and career support. The process of notifying and discussing next steps with these employees is expected to take several weeks.
Additionally, the company is sunsetting Riot Forge, its publishing label for third-party developed games, after the release of its upcoming game, Bandle Tale. This decision will also impact some of Riot's games, like Legends of Runeterra, which will see a reduced team and a shift in focus to the 'Path of Champions' PvE game mode.
Despite these changes, Riot Games remains committed to its core games, including League of Legends, Valorant, Teamfight Tactics, and Wild Rift. The company is focusing on these areas to meet community demands and develop more content. They are also continuing work on Project L, Arcane Season 2, and other unannounced projects.
This news of layoffs at Riot Games is part of a larger trend in the gaming industry, with other companies like Unity and indie publisher Thunderful also announcing significant staff reductions.