Tough Times in the Gaming Industry – More Layoffs in Esports

The esports company ESL FACEIT Group is undergoing yet another round of layoffs. With the gaming and esports industries facing a tougher climate, achieving profitability has become increasingly difficult.

Long-time esports journalist Richard Lewis reports that sources say layoffs have already begun across both business divisions – the FACEIT platform and the ESL tournament operations.

Esports has been on a growth path for years, but as it becomes harder to generate revenue, investor funding is also drying up. The industry now faces a turning point where tournaments, organizations, and companies must learn to stand on their own financially.

Financial records from ESL reveal that the company was already carrying debt from previous operations. Coupled with declining sponsor revenues, the road to profitability seems farther away than ever.

It’s clear that tougher times lie ahead, and the map of the esports landscape is being redrawn.

I maintain that traditional esports organizations should have shifted their focus earlier – toward newer games and formats that appeal to younger players, rather than continuing to build tournaments for the same old games and audiences.

We’ll revisit this topic soon.