FaZe Clan lays off 40% of its workforce

Esports organization FaZe Clan has confirmed reports that it filed an 8-K over the weekend to confirm its decision to let go of 40% of its staff as it continues to struggle on the stock market.

The details:

• On May 19, Digiday reported that FaZe would lay off even more employees in 2023, with CEO Lee Trink informing employees earlier that day via an internal email. Trink explained that the decision was made as a result of the company's "heavy focus on [its] costs and redefining our structure to set [it] up to not only survive in this increasingly challenging macro economy but prepare for the best possible future." "This does not mean that we are abandoning our aspirations for FaZe — we are simply setting some of our larger goals aside so that we can put our heads down and focus on what's directly in front of us," he continued.
• FaZe's Communications team confirmed the news on Twitter, stating that an 8-K would be filed later in the day. It also stated that the company had "executed on material cost reductions to protect capital," and that it would continue to make changes to push the organization toward profitability.
• The exact number of people directly affected by the decision is unknown at this time, but we do know that FaZe has as many as 200 employees, according to its LinkedIn page, meaning up to 80 employees may have lost their jobs this time.
• This is FaZe's second round of layoffs this year, following a 20% reduction in its workforce in February due to similar economic reasons, with the company's stock prices plummeting from a high of $24.69 to $0.59 at the time of writing, putting the organization at risk of delisting from the NASDAQ stock exchange. Snoop Dogg, a former member of its board of directors, resigned from his position and sold the majority of his shares in April, likely due to the company's poor financial performance.
• Trink assured everyone that he and the rest of the company would not "abandon the aspirations" they have set for FaZe, but will instead set "some of its larger goals aside" to focus on the goals that are "directly in front" of it. Only time will tell if FaZe can recover from a difficult few years.

Other esports layoffs in 2023:

• The Guard, a Kroenke-owned organization that laid off its creative, social, and content staff in February, is reportedly looking to sell both its Overwatch League and Call of Duty League spots and will cease operations once their respective seasons end. Its VALORANT team was also rumored to be departing, but it is still active in the North American Challengers circuit.
• Counter Logic Gaming (CLG) was acquired by NRG Esports, which also acquired its League of Legends franchise, with Madison Square Garden Sports becoming a majority shareholder. CLG employees were informed that they would be laid off as a result of the sale, except those in its League of Legends vertical.
• 100 Thieves went through a round of layoffs in January, laying off around 30 people, including several senior staff members. Chief operating officer John Robinson explained on Reddit that the team's "biggest source of revenue" was still its partnerships, with Juvee and Higround "healthy and growing."