Riot Games Announces Layoffs and Closure of Riot Forge Label: A New Chapter for the Company

Riot Games, the renowned developer and publisher of popular titles such as League of Legends, Valorant, and Legends of Runeterra, recently announced a significant restructuring of its business. The company is laying off approximately 530 employees, or about 11% of its global workforce, and shutting down its Riot Forge label. This move comes as a necessity for Riot to refocus its efforts and resources on its core business and prioritize the development of its flagship titles.

In a letter to staff, Riot Games CEO A. Dylan Jadeja explained that since 2019, the company has been making “a number of big bets,” “broadening its portfolio,” and growing “quickly,” with the company size doubling in just a few years. However, these investments have not yielded the expected results, and the costs have grown to an unsustainable level. Jadeja acknowledged that these changes would be tough for the teams and expressed regret for the impact on the affected employees.

The layoffs will begin over the next hour and finalize in the coming weeks, depending on local laws. Riot is offering six months of salary minimum to all laid off employees, cash bonuses, and a range of additional benefits and supports. The company is also asking everyone to cancel meetings in the coming week and work from home if possible while team members process the situation.

In addition to the layoffs, Riot Games is also shutting down its Riot Forge label following the release of Bandle Tale. Riot Forge was launched in December 2019 as an indie publishing label to produce games from third-party studios using Riot IP. Over the past few years, it has been behind games such as Song of Nunu, Ruined King, Hextech Mayhem, and The Mageseeker. However, Riot does not view this as a core part of its strategy moving forward.

Despite the closure of Riot Forge, Riot Games remains committed to its core titles. League of Legends, Valorant, Teamfight Tactics, and Wild Rift will be more ambitious than ever, and their teams will be prioritized. Legends of Runeterra will continue, but the game has faced financial challenges, and costs more to develop and support than it makes. As a result, the team is being downsized, and the focus is shifting to the PvE Path of Champions.

Riot Games’ layoffs come as part of a larger trend in the entertainment industry, with an estimated 10,000 individuals losing their jobs industry-wide in 2023 alone. The tech sector has been particularly hard-hit, with numerous layoffs and studio closures. The industry is facing funding drying up, project cancellations, and consumers pulling back on spending on non-essential items.

The layoffs at Riot Games serve as a reminder of the challenges facing the entertainment industry and the need for companies to adapt and refocus their efforts to remain competitive. Riot Games’ decision to lay off employees and shut down Riot Forge is a difficult one, but it is a necessary step for the company to center its efforts on its core business and prioritize the development of its flagship titles.

In conclusion, Riot Games’ announcement of layoffs and the closure of Riot Forge marks a new chapter for the company. While it is a challenging time for the affected employees, Riot is offering generous severance packages and support to help them through the transition. The company remains committed to its core titles and is refocusing its efforts to prioritize their development. The entertainment industry continues to face significant challenges, and companies must adapt and evolve to remain competitive. Riot Games’ decision to restructure its business is a testament to its resilience and its commitment to delivering high-quality games to its players.

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