Riot Game is going to be laying off a huge chunk of its global workforce. The layoffs will include 530 employees (11% of its global workforce) to ensure “long-term sustainability.” While this is not new to the video game industry, what is significant is how well the company is treating these former employees.
According to a blog post by Riot Games, most impacted roles will be outside of core development teams. Details regarding specific departments and positions affected are expected in the coming days. Riot has outlined a comprehensive severance package to support departing employees through this transition. It’s incredible, and I’ve never heard something so generous.
The package includes:
- At least six months of salary, including notice period, with additional months based on tenure.
- A cash bonus equal to 100% of each employee’s individual 2023 Annual Performance Bonus target.
- Continued health insurance coverage through their last day of employment, with additional financial support to cover premiums for the length of severance pay.
- Access to the Play Fund and Wellness Fund and an additional $1,000 to assist with potential expenses.
- Vested equity will remain intact, including single-vesting RSUs and other vested instruments.
- A laptop and peripherals for continued job searches.
- Six months of career support services, including job placement assistance, career coaching, and resume guidance.
- Access to the Riot Employee Assistance Program (RAP) for three months, offering emotional, legal, and financial support.
- Visa assistance for non-citizen employees, including potential transitions to non-employment visas.
I will emphasize again I’ve never heard of any company being this generous when laying off employees. Six-month severance is already a huge deal, but the rest is so kind that it’s hard to be mad. This sounded like they had no choice and wanted to help those leaving as best as possible.
Riot, of course, emphasized that they understand the gravity of this decision and its impact on affected individuals. CEO Dylan Jadeja expressed deep gratitude to departing employees for their contributions and pledged continued support during their transition.
In addition to the layoffs, Riot is undertaking strategic adjustments to its portfolio. While League PC, VALORANT, Teamfight Tactics, Wild Rift, and R&D exploration remain core priorities, other areas will change. Legends of Runeterra will undergo a team reduction and shift focus to its PvE mode, Path of Champions, due to ongoing financial challenges.
Meanwhile, the Riot Forge program for external collaborations on smaller IP games is being sunsetted after the upcoming release of Bandle Tale. Riot plans to further detail its updated portfolio and plans for players in 2024 during a RiotNow event in early February. This week, they will also hold a global town hall to provide more context and answer employee questions.
This is sad news, even with the benefits coming to those affected. Still, this is a great way to send off employees and gives them many chances to find other employment.
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