WASHINGTON (dpa-AFX) - Riot Games have announced that they will lay off about 530 employees, or 11 per cent of their global workforce, to 'focus and move us towards a more sustainable future'.
In a blog post, CEO Dylan Jadeja said, '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,' he added.
Jadeja stated that the workforce reductions occurred following the company's implementation of 'number of big bets' company-wide starting in 2019.
'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,' he said.
Riot Games is offering a minimum 6 months of salary as severance pay, which includes notice period for all Rioters whose roles are going away, and more for those with longer tenure, in line with local laws.
The company has also announced a cash bonus equal to 100% of everyone's individual 2023 Annual Performance Bonus target, even if Rioters joined within the last year.
The company is also offering an additional $1000 or local equivalent to cover other types of expenses. Employees who have received Riot shares from vesting their single-vesting RSUs will get to keep them, subject to their terms and conditions.
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