Dignitas latest in esports to cull workforce

North American esports organization Dignitas is the latest in the industry to lay off staff amid the declining economic landscape.

The story: Dignitas is owned by New Meta Entertainment.

• The esports org, which is the esports division of a company backed by Harris Blitzer Sports & Entertainment, has laid off an undisclosed amount of employees. This was first reported by James Fudge.
• It hasn't disclosed the number of staff affected by the layoffs. Fudge reports that it will not impact the competitive teams that Dignitas houses. The report cites a source that states New Meta Entertainment is assisting the affected employees in finding new work.
• “Due to a strategic shift in our business, New Meta Entertainment has made the difficult decision to part ways with employees who were valued contributors," said CEO Michael Prindiville in a statement. "We thank the departing employees for their tireless work and dedication."

The landscape: Esports is one of many industries to be hit by the pandemic and economic downturn.

• British organization Guild Esports announced in June that it had cut staff from 45 to 30 since March 31, though subsequent backlash on social media made it clear that many of those departures were voluntary on the behalf of the former staff.
• Just last month it was revealed that ORDER, an Australian esports organization, has laid off at least a dozen of its employees.
• 100 Thieves, a North American organization that raised $60M in December 2021, laid off over 20 people just a week later.
• It's also been rumored that TSM, another major org from North America, reduced its workforce significantly in July. A recent Dexerto report states that it has considered selling its partner slot in Riot Games' LCS.
• Considering the generally poor financial performances of competitive esports teams, it's expected that more layoffs are set to hit the industry in the following months as organizations prepare to survive the current economic state.
• Alongside its recent financial report, British org Semper Fortis Esports revealed that it would exit every game besides Rocket League as it looked to "significantly reduce" its overhead costs.