ESL Faceit Group Announces 15% Staff Cuts Two Years After $1.5 Billion Merger

In a significant move that has reverberated across the esports industry, ESL Faceit Group (EFG) has announced the dismissal of 15% of its global workforce. This decision comes exactly two years after the landmark merger that formed the world's largest independent esports company, a merger facilitated by Savvy Games Group's acquisition of both ESL and Faceit for a staggering $1.5 billion. VentureBeat was the first to report on these layoffs.

In January 2022, the merger positioned EFG at the pinnacle of the esports world, incorporating giants like Vindex and its subsidiary, Esports Engine, into its fold. However, the path forward has necessitated a strategic downsizing. According to EFG's co-CEOs, Craig Levine and Niccolo Maisto, this move is aimed at ensuring the group's continued evolution in a rapidly changing market environment.

To guarantee ESL Faceit Group's progression in the fast-developing market, we plan to reduce our team size by approximately fifteen percent. This change is directed towards supporting EFG's ambitions for sustainable growth and profitability

ESL Faceit Group

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The rationale behind these layoffs, as outlined in the Media FAQ released by ESL Faceit Group post-announcement, is partly to aid the reorganization of EFG towards its core business objectives and support its sustainable development, growth, and profitability. The exact impact these layoffs will have on ESL as a tournament operator and on future esports tournaments remains unclear.

ESL Faceit Group has clarified that these layoffs are a strategic optimization of its operations, aiming for a more integrated teamwork within the company. This move comes at a time when the gaming industry has already seen a loss of approximately 10,500 jobs in 2023 and an additional 6,100 in the first two months of 2024 alone.

This development marks a significant moment of transition for ESL Faceit Group and the esports industry at large. As EFG navigates through these changes, the esports community watches closely, anticipating the potential impacts on the competitive landscape and the future of esports events.