Global multi-faceted esports tournament company ESL FACEIT Group has announced a round of layoffs which will affect approximately 15% of its global workforce.
The layoffs will seemingly affect the entirety of the company, and not just specific departments. According to a statement released by the company, the decision to reduce its workforce was made to support EFG’s ‘sustainable growth ambitions and profitability’.
The layoff round was announced by the ESL FACEIT Group Co-CEOs Craig Levine and Nic Maisto via the company’s official website.
A 15% reduction in EFG’s workforce means a significant portion of the company’s employees will exit the company, with some reports expecting up to 300 people to be laid off across all departments and seniority levels. EFG did not share the actual numbers, citing ‘local labour laws’ as a reason for not disclosing the information.
In a media FAQ, ESL FACEIT Group noted that the “reorganisation will ensure EFG continues to evolve in a fast-paced market, and support the reorganisation of EFG toward its primary business
goals”.
ESL FACEIT Group was created in early 2022 via a merger of esports tournament organisers ESL and FACEIT. The company is owned by the Savvy Games Group, a Saudi government-backed gaming and esports company that in 2022 announced a $38bn investment plan. In 2023, Savvy Games Group notably acquired mobile game developer Scopely and is an investor in Chinese esports company VSPO.
It seems like EFG is not immune to the esports industry trends that sadly shift towards layoffs and restructuring in the early days of 2024. Notable companies in the space, such as Twitch, Riot Games and Microsoft have already laid off hundreds of workers worldwide. The reasons for these moves are similar for most companies. Many cite “‘efocusing’ as the main goal, and say that the moves are needed to better concentrate on their core businesses.
ESL FACEIT Group Co-CEOs Craig Levine and Nic Maisto shared: “With the industry in constant change, we must adapt, become more efficient, and be more flexible as a team. These moves, along with efforts to reorient the team on EFG’s core mission and vision, will sharpen our focus and better equip us to navigate the dynamic esports and gaming landscape by removing complexity and better integration across all teams.”
The news comes after ESL FACEIT Group recently kickstarted its own streaming service called FACEIT Watch together with Znipe Esports, and announced that it will produce the new Overwatch Champions Series.
