ESL Faceit Group (EFG), the largest independent esports company in the world, has announced a workforce reduction of 15% following its $1.5 billion merger with Savvy Games Group. This decision aims to streamline the organization and reduce complexity, with estimates suggesting that around 250-300 positions will be cut globally.
The layoffs will impact all departments and levels of seniority within EFG. The company has prioritized efficient staffing for its core products, and while it has offered financial support to affected employees, the details of these packages will vary depending on local labor laws.
To ensure a smooth transition, EFG is making efforts to notify employees quickly across different time zones. Town halls will be held to provide clarity and transparency regarding the details of the layoffs. Impacted employees will have access to their company email until February 28 and will also have the opportunity to keep their laptops and phones after leaving the company.
According to co-CEOs Craig Levine and Niccolo Maisto, this decision was not made lightly. They believe that the new organizational structure will enhance EFG’s ability to serve its fans, community, and partners and advance its strategic priorities during this transition period.
The layoffs are part of EFG’s efforts to integrate teams and streamline operations following its merger with Savvy Games Group. Merging three of the largest independent esports tournament organizers globally into one company often leads to redundancies in similar roles. However, it is crucial not to overlook the human impact of these layoffs, especially considering the current state of the esports market.
The broader games industry has already experienced significant job losses in recent years, with an estimated 10,500 jobs lost in 2023 and a further 6,100 in the first two months of 2024. While the promise of improved efficiency and reduced costs may offer some reassurance to EFG, it may not provide much comfort to those who have lost their jobs.
This is the second round of layoffs for ESL Faceit Group in the past year. In July 2023, approximately 65 employees were cut following the acquisition of parent company Vindex. Despite these workforce reductions, EFG remains confident in its ability to grow and advance its strategic priorities, with the backing of Savvy Games Group and the support of the Saudi Arabian government’s Public Investment Fund.
EFG does not expect these cuts to impact its partnerships and believes that they will enable the company to respond and adapt more quickly to the needs of publishers, sponsors, and other partners.
As the games industry continues to evolve, it is essential to consider the human impact of organizational changes and to support those affected by layoffs. While companies strive for growth and efficiency, it is crucial to remember that behind every decision, there are individuals whose lives and careers are being disrupted.