By Sagar V. Mankar ESL FACEIT Group (EFG), a leading global esports tournament organizer, has announced layoffs impacting approximately 15% of its workforce worldwide.
This move comes as part of EFG’s efforts to support “sustainable growth ambitions and profitability” according to a statement by co-CEOs Craig Levine and Nic Maisto.
How Many Employees Will Be Laid Off?
While EFG did not disclose exact numbers, 15% of its global workforce could mean up to 300 to 400 employees exiting across departments and seniority levels.
The layoffs will affect the entirety of the company rather than specific divisions.
EFG cited “local labor laws” as the reason for not providing more details on the number of layoffs.
Industry Trends Behind the Layoffs
EFG’s move aligns with recent layoffs and restructuring in the esports and gaming industry in early 2024.
Major players like Twitch, Riot Games, Microsoft, and even Sony (yesterday) have laid off hundreds of employees citing a need to refocus on core businesses.
The dynamic landscape requires companies to adapt quickly and reduce costs through downsizing.
EFG seems to be following this trend of downsizing in the face of economic challenges.
What Does This Mean for EFG?
While layoffs are never easy, EFG is likely looking to trim expenses and realign itself to be leaner and more agile.
The long-term impact remains to be seen.
EFG was formed in 2022 from a merger between ESL and FACEIT.
It is backed by Saudi Arabia’s Savvy Games Group, which has invested billions into gaming and esports.
The coming months will tell if the layoffs pay off through improved productivity, efficiency, and a tighter focus on EFG’s core business as an esports tournament platform.