Tencent's Riot Games To Cut 11% Of Global Workforce, Citing Unsustainable Costs
Portfolio Pulse from Benzinga Neuro
Tencent Holdings Ltd's subsidiary Riot Games is laying off 11% of its workforce, around 530 employees, due to unsustainable costs and the need for a sharper focus. The layoffs will affect non-core development teams and will see the discontinuation of new game development under 'Riot Forge' and adjustments to 'Legends of Runeterra'. The gaming industry has seen over 10,000 layoffs in 2023, with AI's impact on jobs and income inequality being a concern highlighted by the IMF.
January 23, 2024 | 7:51 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Alphabet Inc's Google has faced criticism from employees amid industry layoffs, although it is not directly involved in the Riot Games layoffs.
The mention of Google in the context of industry layoffs and employee dissatisfaction could contribute to negative sentiment around the company, even though it is not directly related to the Riot Games layoffs. This could potentially affect investor perception and stock price in the short term.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
Tencent Holdings Ltd's subsidiary Riot Games is laying off 11% of its workforce, which may lead to short-term cost savings but also raises concerns about the company's growth and operational focus.
While layoffs may reduce costs in the short term, they can also indicate underlying issues with the company's growth strategy and operational efficiency. This news could lead to mixed investor sentiment, with some perceiving it as a positive cost-cutting measure and others as a negative sign of trouble ahead.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80