Los Angeles, California-based Riot Games, a video game developer, publisher, and esports tournament organizer, announced an eleven-percent reduction in force.
The personnel realignment will impact 530 employees.
Chief Executive Dylan Jadeja noted...
Rioters,
Today, I’m sharing a decision we hoped we would never have to make at Riot. We’re changing some of the bets we’ve made and shifting how we work across the company to create focus and move us toward a more sustainable future. This decision means we’re eliminating about 530 roles globally, which represents around 11% of our workforce, with the biggest impact to teams outside of core development. This also sadly means we’ll be saying goodbye to many talented colleagues and friends across all areas of Riot.
I realize this is awful news to hear, and especially hard for those who will be leaving us. To all the Rioters who are being laid off, we are deeply sorry that it has come to this.
As CEO, I’m accountable for the changes we’re making and where we’re headed in the future. So, I think it’s important for me to share how we got here and how the next few days will work.
How we got here.
Since 2019, we’ve made a number of big bets across the company with the goal of making it better to be a player. We jumped headfirst into creating new experiences and broadening our portfolio, and grew quickly as we became a multi-game, multi-experience company — expanding our global footprint, changing our operating model, bringing in new talent to match our ambitions, and ultimately doubling the size of Riot in just a few years.
Today, we’re a company without a sharp enough focus, and simply put, we have too many things underway. Some of the significant investments we’ve made aren’t paying off the way we expected them to. Our costs have grown to the point where they’re unsustainable, and we’ve left ourselves with no room for experimentation or failure – which is vital to a creative company like ours. All of this puts the core of our business at risk.
Over the past several months, we’ve tried to alter our trajectory in many different ways. We asked leaders to make tradeoffs in the things their teams are working on. We rolled out hiring slowdowns, and in some cases hiring freezes. We put an emphasis on controlling costs while strengthening our revenue growth. All of which has without a doubt been tough for our teams.
But as I’ve dug in with leaders across Riot, it’s become clear to all of us that these changes aren’t enough. We have to do more to focus our business and center our efforts on the things that drive the most player value – the things that are truly worth players’ time. Unfortunately, this involves making changes in the area where we invest the most — our headcount.
I want to be super clear about something: this is absolutely the last thing we ever wanted to do. A decision like this has a massive impact on people’s lives and on the culture of Riot. We’re not doing this to appease shareholders or to hit some quarterly earnings number – we’ve made this decision because it’s a necessity. It's what we need to do in order to maintain a long-term focus for players.
How this will work.
There is no perfect way to do a layoff, but our guiding principle is to do our very best to make sure we’re treating Rioters with respect and grace. We want those who are leaving us to feel supported in this difficult moment. This starts with limiting the time they spend in ambiguity about their role and future with Riot, wherever possible.
We’re not expecting this to be a normal, “business as usual” week for us. We’re asking everyone to cancel meetings and rituals over the next few days where possible as we move through these changes together. Also, if you’re at one of our US offices now, we ask that you head home for the rest of the day and work remotely through Wednesday. If you need to come into the office on those days, please respect those who may be having difficult conversations and give them space to process.
The path forward.
There’s no way around the fact that this is an extremely sad moment. For those who are leaving… I want to reiterate, we are deeply sorry for the impact this has on you and your family. I can’t thank you enough for everything you’ve done for Riot, and for your dedication to players. We’re committed to doing our best to support you in this moment and through this transition.
For those who are staying, I know this is a difficult time for you too. You’re not only losing coworkers and friends, but you may also feel uncertain about the road ahead. I want to assure you that our vision for the future remains ambitious – we will not lose our desire to dream for players, and as hard as this moment may be, we will emerge from it in a stronger place. I’m confident that by creating focus together, thinking long-term and operating as One Riot, we’ll be able to truly make it better to be a player.
While we’d love for this news to remain within our virtual walls, we know that’s not realistic; there are many members of our global community who care deeply about the people who make and support their favorite games. With that in mind, I’m going to share this email publicly on riotgames.com in the hopes that it answers most of their questions so you don’t have to.
We’re going to hold a Riot WW Town Hall on Thursday to give more context into this moment as well as portfolio changes we’ve made. Until then, I’d like to reiterate my deep gratitude to all the Rioters who are leaving. Your passion and commitment has been felt by the people around you and the millions of players we serve.
Dylan
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?