EFG layoff 15% in new cuts under Savvy Games Group
As first broken by Jordan Fragen of GamesBeat, ESL FACEIT Group have announced a series of layoffs affecting around 15% of its workforce. The layoffs reportedly affect a number of positions across EFG's global workforce, with the layoffs being wider in scale than the July 2023 layoffs that affected EFG subsidiary Esports Engine.
According to a Media FAQ released by ESL Faceit Group following the announcement of the layoffs internally, these layoffs were made in part to "support the reorganization of EFG toward its primary business goals" while also "support[ing] [EFG]'s sustainable growth ambitions and profitability."
These layoffs are the second to come following ESL and FACEIT's acquisition by Savvy Games Group for a reported $1.5B. Savvy Games Group is a Saudi Public Investment Fund (PIF) owned company with deep ties to the Saudi state as the Chairman of the Board is Saudi Arabian crown prince and prime minister Mohammed bin Salman.
In a memo sent out to employees that were not affected by the layoffs, co-CEO Craig Levine explained that the layoffs were "the next step in EFG's evolution from previously independent businesses into one centralized company united by a clear vision. Our priority has always been to build a future proofed, purposeful organization set up to drive growth."
The company is hosting a Town Hall today, but will not do a live Q&A. Dust2.us was informed by one source close to the layoffs that the impact was across the board, but mostly focused on employees located in Denmark. It is unknown how many North American employees were impacted at this time. Longtime ESEA/ESL employees Jackson "el_jack0" Wolf and Zyrus "Osodank" Bechstein remain with EFG.
According to GamesBeat, EFG does not expect that these layoffs will impact any of their partnerships. Rather, they believe it will help the company respond more quickly to needs of publishers, sponsors, and partners.
