ESL FACEIT Group is reportedly implementing further workforce reductions, with sources indicating that employees at their Burbank, California office are the primary focus. The company has scheduled a town hall meeting to address staff, following separate notifications to those affected by the layoffs.
According to TEA, While the precise number of impacted employees remains undisclosed, estimates suggest that the Burbank office, home to 20 to 30 individuals, will bear the brunt of the cuts. It’s unclear whether any Burbank-based employees will remain with the company, and if so, whether they will relocate to Esports Engine’s main operations in Ohio or stay in California.
The Burbank office has been a significant part of the company’s structure. Its staff became part of Esports Engine after ESL FACEIT Group’s parent company, Vindex, acquired Esports Engine in March 2023. Prior to that, these employees were associated with Next Generation Esports, which merged with Vindex on October 31, 2019.
This round of cuts follows a broader restructuring effort earlier this year. In March 2024, ESL FACEIT Group announced a 15% reduction in its global workforce, affecting an estimated 250 to 300 employees, along with the closure of several business units, including Dreamhack Sports Games and the Vindex analytics platform. Co-CEO Niccolo Maisto stated at the time that approximately 1,200 employees remained after those layoffs.
Sources indicate that pressure from ESL FACEIT Group’s owners, Savvy Games Group (backed by the Saudi Arabian government’s Public Investment Fund), is driving the push for profitability by the end of the year. These staff reductions and other cost-cutting measures appear to be key strategies in achieving that goal.
EFG has provided us with an official statement regarding the matter and here it is:
As part of EFG’s mission to maintain and grow its position as the world’s leading esports business, it is important that we are constantly evolving and finding ways to enhance the services that we offer our partners. With this in mind, we have decided that by concentrating our focus on establishing one state of the art studio in Columbus, Ohio, rather than spreading the load across two locations, it will enable us to improve the quality and quantity of the work we can deliver. As such, we will be closing down our Burbank studio and moving the team and services to Columbus. Whilst the majority of our employees who are based out of our Burbank studio will transfer to Columbus, either through relocation or remote work, a small number will be leaving EFG. We thank those people greatly for their exceptional work.
ESL FACEIT Group
