Tencent (OTCMKTS:TCEHY) layoffs are a hot topic on Tuesday as subsidiary Riot Games announces plans to cut jobs around the world.
Riot Games, the developer behind the multiplayer online battle arena video game League of Legends, is reducing its headcount by 530 people. This comes as the company seeks to focus on its main offerings, as some projects haven’t performed as well as expected.
Riot Games CEO Dylan Jadeja said the following about the job cuts:
“Some of the significant investments we’ve made aren’t paying off the way we expected them to. Our costs have grown to the point where they’re unsustainable, and we’ve left ourselves with no room for experimentation or failure – which is vital to a creative company like ours. All of this puts the core of our business at risk.”
Tencent Layoffs: How This Affects Riot’s Games
The Tencent subsidiary notes that these layoffs will mostly affect employees outside of its core team. That includes those behind smaller projects. The Legends of Runeterra team are among them, as that game hasn’t performed as well as Riot Games hoped it would.
Riot Forge is also closing down alongside these Tencent layoffs. This is Riot Games’ division for outsourcing smaller projects to different developers. Riot Games notes that this will see it focus on its multiplayer experiences, including League of Legends, Valorant, Teamfight Tactics and Wild Rift, over single-player games.
TCHEY stock is down 3.1% as of Tuesday morning.
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We have all of the hottest market news ready to go on Tuesday! Among that is what’s going on with shares of Newcourt Acquisition (NASDAQ:NCAC), Vroom (NASDAQ:VRM) and Gamer Pakistan (NASDAQ:GPAK) stock today. You can find out all about these topics at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
