Her Galaxy Thrives Despite Delayed Pay for Employees, Layoffs in June

Key insights

6 takeaways

01
Galaxy Racer's North American division, Her Galaxy, is currently facing significant operational instability, including reports of five weeks of back pay owed to employees as of July 2023.
02
In June 2023, Galaxy Racer conducted layoffs affecting five individuals in its North American division, citing a global corporate reorganization and performance-based restructuring.
03
Despite the internal turmoil, Her Galaxy successfully executed an Apex Legends tournament in late June 2023 featuring over 60 participants.
04
A planned Rocket League event, which had undergone licensing negotiations and venue securing, has been postponed until the fall season following the June layoffs.
05
Galaxy Racer management attributes the payment delays to a global merger with Rivea Technology and Entertainment Limited (RTE) and banking transaction issues, promising to resolve outstanding balances.
06
Approximately 10 to 12 employees remain at Her Galaxy, though ongoing communication issues with the Dubai-based headquarters have led to staff considering resignations.

Summary

Her Galaxy, the North American division of the Dubai-based esports company Galaxy Racer, has faced significant internal instability, including staff layoffs and persistent payroll delays. Despite these operational challenges, the organization has continued to execute grassroots esports events aimed at supporting women and marginalized genders. The situation highlights a growing disconnect between the North American team and the parent company’s headquarters, leading to concerns regarding the long-term viability of the division’s planned programming.

In June 2023, the company conducted layoffs affecting five individuals, all of whom were women. While internal sources characterized these cuts as abrupt and lacking clear justification, Galaxy Racer leadership maintains that the departures were part of a broader corporate reorganization and were based on performance within the talent and sales divisions rather than gender. Simultaneously, employees have reported ongoing financial strain, with the company falling five weeks behind on payroll. Management has attributed these payment delays to global corporate restructuring and banking transaction issues, promising to rectify the situation.

The operational impact of these issues is evident in the status of upcoming projects. While a recent Apex Legends tournament was completed successfully, a highly anticipated Rocket League event has been placed on hold indefinitely. Although the company denies claims of poor communication, the combination of financial uncertainty and the suspension of key initiatives has left remaining staff members questioning the future of the organization. The company’s ongoing merger with Rivea Technology and Entertainment Limited is frequently cited by leadership as a factor in these current administrative and financial hurdles.