Image credit: Riot Games
Riot Games bid farewell to its 500+ employees who are out of the job as well as its third-party publishing label, Riot Forge.
Just hours earlier, Riot Games released an important update about its future that has resulted in about 530 global roles being eliminated, which equalled to about 11 per cent of Riot's entire workforce. This greatly impacted teams that are outside the core development, but that's not all. Riot's third-party publisher, Riot Forge will also not be a part of the company's vision moving forward after the upcoming release of Bandle Tale.
Having made its debut in 2019, Riot Forge was seen as the focal point for single-player spin-offs in the League of Legends universe and after five titles, Bandle Tale will be the sixth and final game to be released from the third-part publisher. However, Legends of Runeterra will still be a part of Riot's portfolio, but do expect changes to be made to move the game towards sustainability after not performing as well as they would have hoped.
The letter was addressed by Riot's CEO, Dylan Jadeja where he also spoke about how Riot expanded over the last few years to be a “multi-game, multi-experience company” that also saw its manpower double in a short timeframe. However, it appears that some of what Jadeja describes as “significant investments that were not paying off the way it was expected to”. This had led to unsustainable growing costs that have now left Riot with no room for experimentation or failure.
This caused Riot to alter its trajectory in many different ways that included cutting down costs whilst strengthening revenue growth at the same time. There were also hiring slowdowns and in some cases, freezes alongside having team leaders make tradeoffs on work their teams put time in. But in the end, it's the lay-offs that they have decided to go with. Credit to Riot for disclosing what its employees can expect during this time.
There is no perfect way to do a layoff, but our guiding principle is to do our very best to make sure we’re treating Rioters with respect and grace. We want those who are leaving us to feel supported in this difficult moment. This starts with limiting the time they spend in ambiguity about their role and future with Riot, wherever possible.
Within the next hour, Rioters around the world will receive an email informing them whether or not their role is, or may be, impacted. This isn’t the usual way we do things, but we wanted to optimize for letting people know as soon as possible, and that’s tough to do at our scale without using email.
Shortly after, every Rioter whose role is or may be impacted will get a calendar invite to meet with their Senior Leader and People team partner and discuss next steps within 48 hours. There's a wide range of local employment processes that have to be followed in situations like these. So, while these meetings will be completed this week in the US, it may take several weeks to finish them around the world as we follow local laws and regulations.
While this isn't the best way for one to receive news on whether they're still in the job, Riot also disclosed a severance pay package alongside several other benefits.
Severance Pay — We’ll offer a minimum 6 months of salary, which includes notice period for all Rioters whose roles are going away, and more for those with longer tenure, in line with local laws.
Cash Bonus — We’ll offer a cash bonus equal to 1x (100% of) everyone’s individual 2023 Annual Performance Bonus (APB) target, even if Rioters joined within the last year.
Health Benefits — In locations where Riot provides healthcare, Rioters covered by our health benefits will continue to be covered through their last day of employment. In addition, they’ll be offered additional pay to cover their health benefits (medical, dental and vision), equal to the length of severance pay, and rounded up to the whole month.
Play Fund, Wellness Fund, etc. — We know Rioters may have planned future expenses that would normally be covered by things like the Play Fund & Wellness Fund, so we’re offering an additional $1000 (or local equivalent) to cover these and other types of expenses.
Equity — Rioters who have received Riot shares from vesting their single-vesting RSUs will get to keep them, subject to their terms and conditions. This also applies to other vested instruments (like options, or cash-settled SARs in certain jurisdictions such as China). In the event of a future buyback opportunity, we intend to allow these former Rioters to participate. Rioters who hold dual-vesting equity, who have satisfied the service-based vesting component at the time of exit, will be able to vest their equity in the event we have a qualifying liquidity event (like a change-in-control transaction) within the next 12 months.
Computer — A laptop is an essential part of finding new work, so after returning their work computers, Rioters will have the option to request a laptop from IT if they don’t have one at home. They can keep their current peripherals like their headset, mouse, and keyboard.
Career Support — Rioters will have immediate access to job placement services for 6 months including, career coaching, networking, resume writing and review, and more to help them transition to a new job.
Rioter Assistance Program — Rioters will continue to have access to RAP 24/7 for three months after they leave Riot which includes trained counsellors who can help with emotional, legal, and financial concerns. In addition, enhanced employee assistance programs (including mental health benefits) will be accessible in a number of locations worldwide. Our local HRBPs will provide information about these programs as available.
Visa Support — We know this change will be particularly challenging for Rioters who hold visas as part of their employment with Riot. Each situation is unique, and we have dedicated support lined up for those who need it. This includes supporting transitions to non-employment visas where possible. Our Global Mobility team and outside immigration consultants will be in touch with impacted Rioters ASAP to discuss their individual situations.
Riot Email Access — Rather than immediately cut off email access, which is more common in these moments, we will continue to provide access to impacted Rioters for a limited time after notification (this will vary by region). We want to make sure Rioters who are leaving us this week have a bit of time to identify and unwind any personal info or accounts that may be tied to their Riot email addresses.
Riot's Commitment
The letter was also clear about where Riot's commitments lay with League of Legends and VALORANT being the obvious choices alongside Teamfight Tactics and Wild Rift. Further exploration of R&D was also part of the pipeline in Riot's path to the future as well as its commitment towards esports and entertainment in support of its games will also remain unchanged.
Even Legends of Runeterra is still on the roster, albeit in a slightly different capacity. Despite not being one of its best performers LoR does have a passionate community, but that still wasn't enough as the team behind the title will be reduced with its focus being shifted to the 'Path of Champions' PvE game mode.
A product-focused RiotNow will be held in early February to dive deeper and discuss its portfolio and plans for the rest of 2024.