ESL FACEIT Group Lays Off 15% of Global Workforce

Layoffs hit ESL FACEIT Group Feb 15 2024

The Esports Advocate has learned that esports tournament organizer and production company ESL FACEIT Group has cut somewhere in the neighborhood of 15% of its global workforce. On Feb. 15, TEA began to hear whispers that the company would be laying off 20% of its staff during the month, but could not independently confirm those details at the time. 

ESL FACEIT Group is a wholly owned subsidiary of Savvy Games Group, which is in turn owned by the Saudi Arabian government’s sovereign wealth fund, the Public Investment Fund. EFG is home to a number of esports-related operations including tournament organizer ESL, tournament platform FACEIT, esports and gaming festival company DreamHack, esports production company Esports Engine, and esports and gaming analytics firm Vindex.

Its global workforce was in the 1,000+ range at the beginning of 2023. TEA has also been told by sources who are familiar with the situation (who spoke on background and asked not to be identified) that these layoffs will affect between 250 – 300 employees when all is said and done. EFG declined to comment on this number, citing local labor laws in different jurisdictions where its employees reside and work.

The story was first published by GamesBeat reporter Jordan Fregan.

The last round of layoffs occurred at EFG in July 2023 at Esports Engine, where roughly 65 employees were cut from staff shortly after it–along with parent company Vindex—were acquired by EFG in March 2023. It is unclear what specific divisions were hit in these latest staff cuts, and due to local labor laws, EFG declined to give an exact headcount of affected employees.

A memo shared with The Esports Advocate by EFG that was sent to staff this morning— co-signed by co-CEOs Craig Levine and Niccolo Maisto—broke the news that 15% of staff would be laid off.

“Due to the global nature of our workforce, there’s no great way to notify affected Employees,” the memo read. “We are committed to ensuring everyone is treated fairly and with the utmost respect. Subject to local time zones and country considerations, all employees will receive confirmation of their current status and next steps as soon as possible.”

 The memo goes on to inform employees that they will have access to email until the end of Feb. 28 6pm GMT. In addition, they will be provided financial aid and job placement support, and employees will get to keep their company laptops and phones.

As for why these layoffs are occurring, the memo notes:

“Since 2021, we have merged ESL, FACEIT and Vindex/EE into becoming the largest esports company in the world. With this we will continue to integrate the business and gain efficiencies in our global workforce. With the industry in constant change, we must adapt, become more efficient, and be more flexible as a team.

“These moves, along with efforts to reorient the team on EFG’s core mission and vision, will sharpen our focus and better equip EFG to navigate the dynamic esports and gaming landscape by removing complexity and better integration across all teams.”

Editor’s note: We updated this story with a note on just how many employees may be affected by this latest round of layoffs.