Riot Games, the creator of the well-known “League of Legends” multiplayer battle game, is following the lead of other technology companies in reducing its workforce by 11%.

On Monday evening, CEO Dylan Jadeja and co-founder and president Marc Merrill released a long statement to employees, explaining that the decision was made in order to “prioritize and guide us towards a stable future.” The statement announced that 530 positions, approximately 11% of the company’s workforce, would be terminated. The company is currently owned by the Chinese tech company Tencent.

The message to customers stated that this action is not to satisfy shareholders or meet a specific quarterly earnings target, but rather it is essential.

The company, headquartered in Los Angeles, California, stated that it had spread its investments too thin, significantly increasing its workforce in just a few years. However, it has now decided to scale back and prioritize its focus on developing games.

“We currently lack a strong direction as a company, and we have taken on too many projects. Unfortunately, some of the investments we have made have not yielded the expected results,” stated the company.

The message expressed remorse to all employees affected by the layoffs at Riot.

Riot Games has announced that employees who are let go will receive a minimum of six months’ salary, as well as cash bonuses and additional perks.

The company stated that it will provide job placement assistance, counseling, and visa support for employees who are working on visas. Those who have been let go can also ask to use a laptop if necessary, according to the company.

In the past few years, employees in different fields such as retail, technology, media, and hospitality have been greatly affected by job cuts. Recent reports have revealed that big companies like Google, Amazon, Hasbro, and LinkedIn have also resorted to layoffs.

Numerous individuals have been employed in the technology industry, which experienced a significant increase in hiring during the pandemic. This was due to the fact that people spent a lot of time at home and turned to playing games online as a means of passing the time.

Riot Games provides sponsorship for the League of Legends World Championship and has expressed their continued dedication to esports and entertainment in support of their games.

The organization announced plans to modify its Legends of Runeterra in order to ensure its longevity. This will involve downsizing the team and shifting their attention to the development of “Path of Champions.” Additionally, the company will no longer continue operating “Riot Forge” after the release of their upcoming game, “Bandle Tale.”

Source: wral.com