Esports Engine, a leading provider of esports infrastructure and services, announced on February 25, 2023, that it was laying off 25% of its workforce. The layoffs come as the company faces financial challenges due to the global economic downturn. In a statement, Esports Engine CEO Ari Segal said that the layoffs were “a difficult but necessary decision.” He said that the company was “committed to providing our employees with the support they need during this transition.” The layoffs affect employees across all levels of the company, including both full-time and part-time workers. The company said that it is providing severance packages and outplacement services to affected employees. Esports Engine is not the only company in the esports industry to be affected by the economic downturn. In recent months, several other esports companies have announced layoffs, including Twitch, G2 Esports, and Immortals. The layoffs in the esports industry are a sign of the challenges facing the industry as a whole. The industry is still relatively young and has yet to reach mainstream profitability. The economic downturn has made it even more difficult for esports companies to turn a profit. Despite the challenges, the esports industry is still growing rapidly. The global esports market is expected to reach $1.1 billion in revenue by 2023. The layoffs in the industry are a temporary setback, and the industry is expected to continue to grow in the years to come.
What Impact Will the Layoffs Have on the Esports Industry?
The layoffs at Esports Engine are likely to have a significant impact on the esports industry. The company is a major player in the industry, and its layoffs will affect many other companies that rely on its services. The layoffs are also likely to have a negative impact on the morale of the esports industry as a whole. The layoffs are a sign that the industry is still struggling to become profitable, and they could make it more difficult for companies to attract and retain talent. Despite the challenges, the esports industry is still growing rapidly. The layoffs at Esports Engine are a temporary setback, and the industry is expected to continue to grow in the years to come.
What Can Esports Companies Do to Mitigate the Impact of the Layoffs?
Esports companies that are facing financial challenges due to the economic downturn can take steps to mitigate the impact of the layoffs. These steps include:
- Reducing costs: Companies can reduce costs by cutting back on unnecessary expenses, such as travel and entertainment.
- Renegotiating contracts: Companies can renegotiate their contracts with vendors and partners to get better terms.
- Raising capital: Companies can raise capital by selling equity or debt.
- Partnering with other companies: Companies can partner with other companies to share costs and resources. By taking these steps, esports companies can weather the economic downturn and continue to grow their businesses.
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