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The world’s largest esports company is cutting 15% of its staff

Esports company ESL Faceit Group today announced it has cut approximately 15% of its global headcount to support sustainable growth and profitability.

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ESL Faceit Group was founded in 2022 after Saudi Arabia’s sovereign wealth fund holding company Savvy Gaming Group bought esports tournament organizer ESL and gaming platform Faceit for $1.5 billion and then merged them into one entity. The goal, as stated at the time of the merger, was to create “the ultimate competitive gaming platform” that would allow publishers and developers to “build sustainable eSports communities and eSports ecosystems.”

 

In 2023, Savvy Gaming also brought technology company Vindex and its Esports Engine division into ESL Faceit Group, making it the world’s largest esports company. However, like many other gaming companies over the past year, it appears that ESL Faceit Group has overestimated its capabilities.

 

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To ensure that ESL Faceit Group continues to evolve in a rapidly changing market, we are planning to reduce our workforce by approximately fifteen percent.

 

— CEOs Craig Levine and Nick Maisto

 

Levin and Maisto noted that the cuts will allow ESL Faceit Group to increase efficiency across its global workforce.

 

With constant changes in the industry, we must adapt, work more efficiently and be a more flexible team. These steps, along with efforts to refocus the team on EFG’s core mission and vision, will sharpen our focus and better prepare us to navigate the dynamic landscape of esports and gaming by eliminating complexity and greater integration across all divisions.”

 

Do you also think that these lines were written by ChatGPT?

 

A separate FAQ says the cuts will affect “all levels and departments… with a focus on effectively staffing our key products.” The cuts will not affect the recently announced agreement with Blizzard for the Overwatch Champions League, as well as the partnership with Electronic Arts for the NHL 24 World Championship.

 

The specific number of layoffs was not disclosed: ESL Faceit Group said it could not share this information due to labor laws in some markets. The ESL Faceit Group career page states that the company currently employs 900+ people. Based on this, we can talk about approximately 135-150 employees.

 

Meanwhile, Sony announced it was laying off 900 people and Supermassive said it would cut about 90 employees. And that’s not all. It is obvious that this year in terms of layoffs will be even more brutal than the last.

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