ESL FACEIT Group Cuts Another 15% of its Workforce

ESL FACEIT Group has undergone another round of layoffs, marking the third round of job cuts, since the 2022 merger that created the esports conglomerate under Saudi Arabia's Savvy Games Group.

Chief Executive Niccolo Maisto informed staff of the reductions in an Oct. 15 internal email, describing the move as a "necessary adjustment" to build a sustainable business model. Maisto characterized the layoffs as "the end of this phase of change" for the company.

The cuts reflect broader pressures across the esports industry as companies pivot from growth-at-all-costs strategies to focus on profitability. ESL FACEIT Group, despite nearly tripling revenue and securing partnerships with brands including Red Bull and Lamborghini, faces mounting pressure from its parent company to meet stricter financial targets.

According to an internal memo reviewed by Esports Insider, the layoffs followed a comprehensive review of staffing redundancies and financial performance across the organization. The company said it would focus resources on its highest-potential business areas.

Saudi Investment Fund Pressures Gaming Portfolio for Returns After Billions in Spending

While the company didn't specify which divisions would bear the brunt of the cuts, a person familiar with the matter said the Europe, Middle East and Africa region would likely see the most significant impact. Previous rounds of layoffs primarily affected platform operations, marketing and production roles at the company's Burbank, Calif., and Columbus, Ohio, offices.

The restructuring comes as Savvy Games Group, backed by Saudi Arabia's Public Investment Fund, pushes its portfolio companies to deliver clearer returns on the substantial investments made during the 2023-2024 fiscal year. The Saudi sovereign wealth fund has emerged as a major player in global gaming, deploying billions of dollars across the sector.

Esports journalist Richard Lewis had initially projected the restructuring could affect 200 to 300 employees when layoffs were first announced in August. The actual figure appears to be significantly lower.

ESL FACEIT Group recently discontinued its women's Counter-Strike 2 division, a move that drew criticism from advocates concerned about the development of women's professional gaming.

ESL FACEIT Group remains a dominant force in competitive gaming, operating major properties including ESL Pro League, Intel Extreme Masters and DreamHack. The layoffs underscore the challenging economics facing esports operators as they work to build sustainable business models in a maturing industry.