Riot Games announced that it is "refocusing on fewer, high-impact projects" in order to "move toward a more sustainable future": approximately 530 employees, or 11% of Riot's total workforce, have been laid off.

In an email sent to employees, Riot CEO Dylan Jadeja said the company has made "many big bets" as it expands into a "multi-game, multi-experience company" in 2019 and beyond. But now, he said, some of those bets "have not paid off" as expected because there are "too many things in progress."

According to Jadeja, adjustments like hiring freezes and other cost-containment measures are not enough, and these layoffs are "necessary" for Riot, not "an effort to placate shareholders or meet quarterly earnings numbers," perhaps ahead of Internet critics

"We are not just a company that is trying to make a profit.

"Our costs have ballooned to the point of unsustainability, leaving no room for experimentation and failure, which is essential for a creative company like ours. Jadeja writes, "And we've run out of room for experimentation and failure, which is essential for a creative company like ours."

In addition to employee reductions, Riot has also made some major changes within the company: the League of Legends-based card game Legends of Runeterra has failed to meet expectations, the development team has been downsized, and the focus of ongoing development has shifted to the PvE mode Path of Champions.

Riot will also end Riot Forge, a program launched in 2019 to create single-player League of Legends games with outside studios. Past Riot Forge releases include Ruined King and Mageseeker. The upcoming craft RPG Bandle Tale is also published under this label.

In a message to players, Riot said its new strategy will "integrate esports, music, and entertainment more tightly into our games."

Riot has made public the severance plan it offers to laid-off employees, which is substantial, at least compared to the typical offer. Everyone who is laid off will receive a minimum of six months severance and a bonus based on annual performance bonus targets for 2023, health benefits, additional payments for expenses covered by Riot's Play Fund and Wellness Fund, access to job placement services for up to six months, and support for those who hold a visa as part of their employment, and several other considerations, including the provision of laptops for those who relied on work devices.

Google offered a similar package to employees it laid off last year, but its minimum severance package was 16 weeks instead of Riot's six months.

The 530 laid-off Riot employees join hundreds of others in the industry who have lost their jobs in recent months as layoffs continue to be one of the defining trends in the gaming industry in 2023 and 2024. Last week, Behaviour Interactive and CI Games announced layoffs, and this week, developer Piranha Bytes found itself in danger of closing.