ESL Faceit Group (EFG) is laying off 15% of its global workforce in an effort to reduce organizational complexity. This translates to the esports behemoth cutting hundreds of positions around the world, with some estimates as high as 250-300 roles.
In January 2022, EFG became the largest independent esports company in the world. Savvy Games Group acquired both ESL and Faceit for a combined $1.5 billion. Since then, EFG has also added Vindex and its subsidiary Esports Engine to the org chart.
“To ensure ESL Faceit Group continues to evolve in a fast-paced market, we are planning to reduce the size of our team by roughly fifteen-percent. This change is designed to support EFG’s sustainable growth ambitions and profitability,” said the company’s co-CEOs Craig Levine and Niccolo Maisto in a memo shared with GamesBeat.
ESL Faceit Group layoff details
EFG’s layoffs will impact the company’s operations across all departments and levels of seniority. The company prioritized efficient staffing for its core products.
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EFG operates and has employees around the world, complicating the company’s re-org efforts. While the company offered financial support to affected employees, the details of these packages will differ. Similarly, the company pointed to varying local labor laws as the reason why they are unable to give an exact number of eliminated positions.
Due to its global operations, EFG is making efforts to notify employees quickly across numerous time zones. ESL Faceit Group plans to hold town halls later today to clarify details with employees.
All impacted employees will have access their company email until Wednesday, February 28 at 6pm GMT (1pm ET/10am PT). Additionally, these laid off staffers will have the opportunity to keep both their laptop and phone after departing ESL Faceit Group.
“As co-CEOs, we did not make this decision lightly. We feel it’s important to take accountability for it, and provide clarity and transparency from the outset of the changes ahead,” the memo continued. “As we embark on the next phase of our company, this new organizational structure will enhance our ability to better serve and bring value to our fans, community, and partners. We are confident in our people to advance our strategic priorities in the midst of this transition period.”
Contextualizing EFG’s re-org
ESL Faceit Group explained that these layoffs will streamline the organization and better integrate teams across the company. Over the last two years, EFG has merged three of the largest independent esports tournament organizers globally into one company. When a merger takes place, it’s common to lay off staff that fulfill similar roles.
Of course, the human impact of layoffs should not be glossed over. The broader games industry lost an estimated 10,500 jobs in 2023 and a further 6,100 jobs in the first two months of 2024. The promise of improved efficiency and reduced costs is cold comfort to laid off employees, especially in a cooled-off esports market.
This is also the second round of layoffs ESL Faceit Group issued over the last year. In July 2023, Esports Engine cut roughly 65 employees. These cuts came about five months after EFG acquired its parent company Vindex in March 2023.
“Since 2021, we have merged ESL, Faceit and Vindex/EE into becoming the largest esports technology ecosystem in the world. We are bullish on the business and feel confident in our ability to grow and advance our strategic priorities, and if we make these changes now we’ll be set up for future success,” said an EFG spokesperson.
Likewise, EFG continues to have the backing of Savvy Games Group. Notably, Savvy is funded by the Saudi Arabian government’s Public Investment Fund (PIF).
EFG doesn’t expect this new round of cuts to impact any of its partnerships. In fact, EFG anticipates that these cuts to help the company respond and adapt more quickly to the needs of publishers, sponsors and other partners.
Edited at 11:00am PT to add estimates of the number of positions cut in ESL Faceit Group’s layoffs.