Valorant developer Riot Games lays off 530 employees; Here's why

Tencent-owned Riot Games, known for developing Valorant, recently said it will be laying off 530 employees globally, which constitutes 11% of its workforce. 

The decision, as shared by CEO Dylan Jadeja, is a response to the company's rapid expansion and the need to refocus on sustainable growth. The layoffs will primarily affect teams outside of core development, signalling a significant shift in the company's operational strategy.

What triggered the layoffs?

As per the statement shared by the company's CEO, Riot Games, Since 2019, has evolved into a multi-game, multi-experience company, doubling its size in a few years.

However, the growth led to a lack of focus and unsustainable costs.

Jadeja said the Investments made during this period did not yield the expected returns, putting the core business at risk. The company's efforts to control costs and emphasize revenue growth were insufficient, leading to the current restructuring, he explained. 

Supporting the impacted employees

Riot Games said it will support the impacted employees with a comprehensive severance package, which includes a minimum of six months of salary, a cash bonus equal to the 2023 Annual Performance Bonus target, and additional pay to cover health benefits.

Notably, the affected employees will also receive $1,000 for future expenses, retain vested equity, and have the option to keep their work laptops. Career support and mental health benefits will be provided, along with visa support for those on employment visas, it said.

Discontinuing Riot Forge

The company said it will continue investing in its main titles like League of Legends, VALORANT, Teamfight Tactics, and Wild Rift. However, it will discontinue Riot Forge after the release of Bandle Tale and make changes to Legends of Runeterra, focusing on the 'Path of Champions' PvE game mode.

The company explains that these adjustments are part of its strategy to concentrate on projects that deliver the most value to players.

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