UPDATED 20/02/25: The article has been updated with a statement from ESL FACEIT Group regarding the Esports Engine layoffs.
Esports Engine has reportedly undergone layoffs that include ESL FACEIT Group employees.
The event operator, a subsidiary of esports tournament organiser ESL FACEIT Group, is expected to close its Burbank, California facility after letting go of the employees from that office.
First reported by The Esports Advocate, employees affected by the Esports Engine layoffs were contacted on February 19th, 2025, with remaining staff members invited to a meeting taking place on February 20th.
Below is a statement from ESL FACEIT Group on the reported layoffs:
“As part of EFG’s mission to maintain and grow its position as the world’s leading esports business, it is important that we are constantly evolving and finding ways to enhance the services that we offer our partners,” reads a statement from ESL FACEIT Group.
“With this in mind, we have decided that by concentrating our focus on establishing one state-of-the-art studio in Columbus, Ohio, rather than spreading the load across two locations, it will enable us to improve the quality and quantity of the work we can deliver.
“As such, we will be closing down our Burbank studio and moving the team and services to Columbus. Whilst the majority of our employees who are based out of our Burbank studio will transfer to Columbus, either through relocation or remote work, a small number will be leaving EFG. We thank those people greatly for their exceptional work.”
It’s believed that between 20 and 30 employees work from Esports Engine’s Burbank offices.
“After four years, my time with EFG, formerly Esports Engine, may be coming to a close soon,” wrote Broadcast Producer Ray Reese in a LinkedIn post.
Operations Producer and Project and Production Manager Megan Isgett-Foster was also impacted by the cut. She stated: “While it’s not unexpected considering the path the company has been on, it was heartbreaking.”
Esports Engine Layoffs Just the Latest in Esports Industry
This is the second instance of Esports Engine announcing layoffs in the past two years. In July 2023, the company laid off 65 employees after its parent company was acquired by ESL FACEIT Group in March.
ESL FACEIT Group also revealed it had reduced its workforce by 15% impacting between 250 and 300 people.
The Esports Advocate reports the reason behind the current round of layoffs is due to the Saudi Arabian Public Investment Fund aiming for ESL FACEIT Group to achieve profitability by the end of 2025.
The esports industry continues to be impacted by layoffs spanning several companies operating in several verticals. Known as the esports winter, companies are continuing to reevaluate structures to ensure stability and sustainability.
2025 has seen industry stakeholders continue to make cuts. In February, Hi-Rez Studios, the developer of Smite, underwent significant layoffs resulting in the closure of the game’s esports scene.