Riot Games, the renowned developer of popular titles like League of Legends and Valorant, has announced significant layoffs affecting 11% of its global workforce, amounting to around 530 employees. The move comes as Riot Games faces challenges in a gaming market that has plateaued, with players showing a tendency to limit investments in new titles or stick to a few beloved classics.
This trend is not unique to Riot Games, as other gaming companies, such as Electronic Arts, have also announced workforce reductions and operational optimizations. The gaming industry as a whole is adapting to changing market dynamics, with companies adopting more fiscally conservative approaches.
Also Read: Epic Games Terminates Nearly 1,000 Employees
In a letter to Riot Games employees, CEO Dylan Jadeja acknowledged two major issues facing the company: a loss of focus and a significant increase in operational costs. The restructuring initiative goes beyond cost-cutting and reflects Riot’s effort to focus on its most successful titles, including League of Legends, Valorant, Teamfight Tactics, and Wild Rift.
As part of the strategic transformation, Riot Games has decided to halt the development of new games under Riot Forge and scale back certain features and personnel within Legends of Runeterra. This move aims to streamline operations and refocus on the company’s core strengths.
