It was just revealed that ESL FACEIT, one of the largest esports companies in the world, is laying off around 15% of its global workforce. In 2022, ESL and FACEIT were combined by the Saudi Arabian firm, Savvy Games Group, in a bank-breaking merger worth $1.5 billion. Following extensive growth, ESL FACEIT revealed ‘bullish long-term feelings’ about esports just months ago, and today, the firm has revealed in a communication that as many as 300 employees are to be made redundant.
This is one of the biggest and most impactful rounds of layoffs to hit the esports industry in recent months. It’s no secret that the games industry is heaving under the weight of the thousands of layoffs that have torn chunks out of the business in the last year or so, and by association, esports is inherently connected to that pain.
‘Continues To Evolve’
In a memo shared with GamesBeat, the co-CEOs, Craig Levine and Niccolo Maisto, said:
‘To ensure ESL Faceit Group continues to evolve in a fast-paced market, we are planning to reduce the size of our team by roughly fifteen-percent. This change is designed to support EFG’s sustainable growth ambitions and profitability. As co-CEOs, we did not make this decision lightly. We feel it’s important to take accountability for it, and provide clarity and transparency from the outset of the changes ahead.’
This round of layoffs will reportedly open up the ‘next phase’ of ESL FACEIT, with the organisational restructure allowing the firm to better serve its community and partners. For some, this news was always lurking in the shadows, especially given the major merger that took place in 2022. A company of ESL FACEIT’s size is always at risk of redundancies, and as the pursestrings tighten in the current economy, no organisation is exempt from the threat of layoffs.
Recently, PlayStation revealed a major wave of redundancies that will strip 8% of its workforce from the company’s books. That comes just weeks after Microsoft and Activision Blizzard laid off almost 2000 employees around the world, some of which came from the company’s esports arm.
ESL FACEIT doesn’t anticipate a change in how it operates in the industry, and it endeavours to not only remain a key player but expand across the business. It’s a tentative and worrying time for everyone involved, and that much cannot be denied.
For more industry news, Esports.net
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