ESL Faceit Group Announces Layoffs: 15% of Global Workforce Affected

ESL Faceit Group Announces Layoffs: 15% of Global Workforce Affected

28. February 2024 by Never

ESL Faceit Group (EFG) is undergoing a significant restructuring effort, resulting in the dismissal of 15% of its global workforce. This move aims to streamline organizational complexity following the company’s emergence as the world’s largest independent esports entity in January 2022.

Savvy Games Group acquired ESL and Faceit for a combined $1.5 billion, integrating Vindex and its subsidiary Esports Engine into the corporate structure.

Details of the Layoffs

The layoffs at EFG will impact operations across all departments and levels of the company. The focus is on optimizing staffing for core products while navigating the challenges posed by the company’s global operations.

Efforts are underway to swiftly notify employees across different time zones, with public meetings scheduled throughout the day to clarify details and provide financial support to affected individuals. However, the exact number of positions being eliminated has not been disclosed.

Statement from Co-CEOs

Co-CEOs Craig Levine and Niccolo Maisto emphasized the significance of this decision and the need for transparency as the company undergoes this transition. They expressed confidence in the new organizational structure’s ability to enhance service delivery and value proposition to fans, communities, and partners.

Context of the Restructuring

EFG explained that the layoffs are part of a broader reorganization aimed at better integrating teams across the company. Over the past two years, EFG has merged three of the world’s largest independent esports tournament organizers into a single entity. Mergers often involve consolidating roles, leading to workforce reductions. However, the human impact of these layoffs is not overlooked.

ESL FACEIT Group lays off 15% of workforce
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The gaming industry as a whole experienced significant job losses, with approximately 10,500 positions eliminated in 2023 and an additional 6,100 in the first two months of 2024. This is the second round of layoffs for ESL Faceit Group in the past year, following Esports Engine’s decision to cut approximately 65 employees in July 2023, shortly after EFG acquired its parent company Vindex in March 2023.

Forward Outlook

Despite the layoffs, EFG remains optimistic about its future prospects, citing its position as the largest esports technology ecosystem globally. The company continues to enjoy the support of Savvy Games Group, backed by the Saudi Arabian Public Investment Fund (PIF). EFG anticipates that these workforce reductions will enable it to better respond and adapt to the evolving needs of publishers, sponsors, and other partners.

ESL Faceit Group lays off 15% of staff 2 years after $1.5B merger
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ESL Faceit Group Announces Layoffs: 15% of Global Workforce Affected

The layoffs at ESL Faceit Group underscore the ongoing evolution and challenges within the esports industry, as companies navigate organizational changes to remain competitive and agile in the rapidly evolving landscape.