Esports layoffs tracker 2024
The so-called “esports winter” has been one of the main industry topics for the better part of 2023, and the start of 2024. With the esports industry struggling to get back on the right track after a major correction following the boom during the pandemic, a large number of employees from both esports and gaming industries have been laid off, with some organisations closing their doors and others trying to focus on their core business.
Companies have largely blamed the layoffs on ‘focus’ — esports and gaming companies pursued ventures outside of their core business, which are no longer sustainable. However, it is also apparent that a large number of esports companies struggle with profitability and large overhead costs and burn rates, which are, in turn, the result of large investment rounds and cash injections the companies received in the years prior to the esports winter.
For example, esports organisation 100 Thieves recently sold its Juvee energy drink business and spun off its game development studio, following layoffs in 2023. This example illustrates the state of the industry quite well — an esports organisation started branched out during a period of growth, and has now had to downsize and “do less, better” to remain financially stable.
Meanwhile, companies such as Amazon-owned Twitch experienced layoffs that it says are related to rapid growth. At Microsoft, however, the layoffs were part of a restructuring that resulted from the company’s acquisition of Activision Blizzard in 2023.
Layoffs have not just affected just esports companies. A large number of gaming businesses were also affected, with Eidos Montreal laying off almost 100 people and cancelling the upcoming Deus Ex Game, mobile developer Playtika laying off around 350 people and game engine company Unity laying off more than 1800 employees in early January. Over 8000 people have been laid off in the games industry in 2024 so far, according to one layoff tracker.
In this article, we’ll aim to track all major esports industry layoffs during 2024, as well as some notable rounds from 2023.