Riot Games, the renowned developer behind the popular game League of Legends, has recently announced a major restructuring move, laying off 530 employees, which constitutes about 11% of its entire workforce. This decision, confirmed by CEO Dylan Jadeja, comes as a shock to the gaming community and marks a significant shift in the company's strategy.
The layoffs are a result of what Jadeja describes as "bad bets" made during a period of rapid growth since 2019. The company's costs have grown to unsustainable levels, necessitating a sharper focus and a reduction in their workforce. Jadeja expressed deep regret over the decision, acknowledging the impact on the employees and the company's culture.
In addition to the layoffs, Riot Games is also shutting down its Riot Forge label. Riot Forge, launched as a publisher within the company, was responsible for the release of third-party games licensing the League of Legends IP. Titles such as Ruined King, Song of Nunu, and the upcoming Bandle Tale were published under this label. However, Jadeja stated that Riot Forge is not considered core to their strategy moving forward.
Despite these changes, Riot Games assures continued commitment to their main titles, including League of Legends, Team Fight Tactics, Valorant, and Wild Rift. However, Legends of Runterra will see a downsized team due to its lower financial performance.
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