Tencent’s Riot Games Reduces Global Workforce by 11%

Riot Games, a subsidiary of Tencent Holdings, has announced plans to cut 530 jobs, accounting for approximately 11% of its global workforce. The company’s CEO, Dylan Jadeja, cited unsustainable costs as the reason for the layoffs. The majority of the job cuts will affect teams outside of core development. Riot Games will now focus on its live game portfolio, including League of Legends, Valorant, Teamfight Tactics, and Wild Rift. This move follows similar job cuts in the gaming industry by companies such as Amazon, ByteDance, Epic Games, Ubisoft, and Niantic. The industry’s job losses can be attributed in part to the mass hiring that occurred at the start of the pandemic in 2020. Riot Games acknowledged that its headcount had more than doubled in recent years. The slowdown in sales and customers’ reluctance to purchase expensive titles or play fewer games amid high inflation have contributed to the job cuts. Despite the availability of highly rated titles, such as Baldur’s Gate 3, Zelda: Tears of the Kingdom, and Spider-Man 2, Riot Games believes it lacks focus and has too many projects underway. As a result, the company will halt new game development under Riot Forge and make adjustments to Legends of Runeterra. Tencent acquired a majority stake in Riot Games in 2011 and also holds a stake in Epic Games.