ESL FACEIT Group undergoes layoffs amid ‘strategic realignment’

ESL FACEIT Group has undergone layoffs as part of its strategic realignment efforts.

The esports tournament organiser stated that the layoffs were part of a wider realignment aimed at ensuring long-term and sustainable growth.

In an internal memo obtained by Esports Insider, and sent to EFG staff, CEO Niccolo Maisto says the realignment has “involved incredibly tough choices,” and those who have been impacted by the layoffs have been contacted.

Maisto also revealed that the latest wave of layoffs is “the end of this phase of change” and doesn’t anticipate further redundancies to take place.

The full internal memo can be found below:

“Hi team,

I want to give you an important update on where we stand as a business and what’s next.

Since the creation of EFG, our business has nearly tripled allowing us to create experiences that we could never have imagined. This rapid growth requires continuous investment, but also introduces complexity and inefficiency over time. To ensure we can grow sustainably and keep investing in our vision for the long term, we must consolidate our operations.

Over the past year, we conducted a comprehensive review to make the business fit for purpose. This was not solely about cost cutting, but a strategic realignment to reduce complexity, streamline operations, and focus resources on areas with the biggest growth potential. These steps are necessary to help us achieve long-term sustainability.

Unfortunately, this involved incredibly tough choices, and we will be saying goodbye to some valued colleagues. Those impacted have received separate communications. Please be supportive, gracious, and understanding as these changes take effect.

Critically, this marks the end of this phase of change. With these foundations in place, we don’t anticipate any further changes of this scale. We’ve now established a truly sustainable foundation while not only preserving our core capabilities but enabling us to better serve our partners and customers moving forward.

Thank you for your resilience and commitment. We have faced the hard decisions, and now, with a clear direction and efficient structure, we can shift our full energy to building the future of esports. I am very excited about the future of EFG. Let’s continue to build it together.”

October’s layoffs follow a report from prominent esports journalist Richard Lewis, stating that between 200 and 300 people could be impacted by the changes that hope to drive sustainability.

This is the third instance of layoffs impacting ESL FACEIT Group following the merger of the two companies in 2022. In March 2024, the company laid off approximately 15% of its global workforce.

The latest wave of layoffs is another significant change to ESL FACEIT Group, despite continuing to secure partnerships with the likes of GRID, Red Bull, and Lamborghini.

In May, Craig Levine announced he would be stepping away from his position as co-CEO to take up an advisory role until the end of the year, resulting in Maisto becoming the sole CEO of the company.

Further streamlining of operations came to light in early October, with ESL FACEIT Group announcing the indefinite suspension of women’s Counter-Strike 2 ecosystem ESL Impact, placing the future of female Counter-Strike in doubt.