Tencent’s Riot Games is planning to lay off 530 employees, which accounts for about 11% of its workforce, according to a company blog post and a letter to employees, Bloomberg reports.
The decision is described as a necessity rather than an attempt to please shareholders or meet quarterly earnings targets. The company acknowledged that its headcount had more than doubled over the last several years.
Riot Games CEO Dylan Jadeja mentioned making several big bets, including the development of new games. However, the company, best known for its popular title League of Legends, recognized the need to sharpen its focus, stating that it currently has too many initiatives underway.
As part of the restructuring, the size of the Legends of Runeterra team will be reduced, and development on the game Bandle Tale will be halted.
