ESL FACEIT Group Lays Off 15% of Global Workforce

Key insights

6 takeaways

01
ESL FACEIT Group (EFG) has laid off approximately 15% of its global workforce, impacting an estimated 250 to 300 employees.
02
The layoffs were announced on February 27, 2024, via a memo from co-CEOs Craig Levine and Niccolo Maisto.
03
EFG stated the cuts are intended to increase operational efficiency and integrate the business following the mergers of ESL, FACEIT, Vindex, and Esports Engine.
04
The company is a wholly owned subsidiary of Savvy Games Group, which is backed by the Saudi Arabian government’s Public Investment Fund.
05
Affected employees are being provided with financial aid, job placement support, and the ability to retain their company-issued laptops and phones.
06
This reduction follows a previous round of layoffs in July 2023, which saw approximately 65 employees cut from the Esports Engine division.

Summary

ESL FACEIT Group (EFG), a prominent global esports tournament organizer and production company, announced a reduction of its workforce by approximately 15% in February 2024. This restructuring effort, which impacts an estimated 250 to 300 employees, is part of a broader initiative to streamline operations following the company’s consolidation of ESL, FACEIT, and Vindex/Esports Engine. EFG, a subsidiary of the Saudi-backed Savvy Games Group, cited the need to adapt to a shifting industry landscape, improve organizational efficiency, and reduce complexity across its integrated business units.

The decision follows a period of significant corporate integration for EFG, which has sought to unify its various entities since 2021. While the company declined to provide an exact headcount of affected staff due to the complexities of international labor laws, the layoffs represent a substantial portion of its global workforce, which numbered over 1,000 at the start of 2023. This action marks the second notable reduction for the group, following a smaller round of cuts at its Esports Engine division in July 2023.

In a memo to staff, co-CEOs Craig Levine and Niccolo Maisto emphasized that the layoffs are intended to reorient the company toward its core mission and vision. Affected employees were promised financial aid and job placement support, alongside the retention of company-issued hardware. By removing operational redundancies, the leadership aims to better position the organization to navigate the volatile and evolving esports and gaming market.