• Loading stock data...
Friday, September 12, 2025
Tuned In is Almost Sold Out! Limited Tickets Remain!

FaZe Clan Lays Off 40% of Staff Amid Esports’ Economic Woes

  • FaZe Clan went public via SPAC last year at a $725 million valuation, but its stock now trades at 59 cents.
  • Content creators signed with FaZe Clan have included NFL star Kyler Murray and Bronny James.
FaZe Clan went public last year at a $725M valuation.
Jasen Vinlove-USA TODAY Sports

FaZe Clan, the esports organization that went public at a $725 million valuation last year, has laid off 40% of its staff amid broader financial turmoil facing the professional video game industry.

According to Digiday, FaZe Clan CEO Lee Trink wrote in an internal email to employees that the layoffs were due to the company’s “heavy focus on our costs and redefining our structure to set us up to not only survive in this increasingly challenging macroeconomy, but prepare for the best possible future.” 

It is the second round of job cuts this year for FaZe Clan after roughly 20% of staff were let go in February. After debuting last year at $13 per share, FaZe Clan’s stock has plummeted to around 59 cents per share and is at risk of being removed from the Nasdaq. 

FaZe Clan reported a $52 million loss last year. The company’s enormous social media following has led to content deals with NFL star Kyler Murray and Bronny James and sponsorship activations with the NFL, McDonald’s, and DoorDash. 

Elsewhere in esports, Team SoloMid (TSM) announced it is selling its slot in the League of Legends Championship Series with a reported asking price of $20 million, according to The New York Times. Forbes valued TSM at $540 million last year as the world’s most valuable esports company. 

Riot Games’ League of Legends Championship Series, the most prominent esports league in the U.S., has seen its viewership drop 13% this spring season compared to 2022. Viewership has declined 32% since 2021, according to Esports Charts estimates cited by the New York Times.

Traditional sports owners have cooled off on their investments in esports, including James Dolan’s Madison Square Garden Company. In 2017, MSG spent over $10 million to purchase a majority stake in esports team Counter Logic Gaming. After being unable to find a new buyer, MSG Sports decided in April to merge Counter Logic with NRG Esports, whose CEO is Sacramento Kings co-owner Andy Miller. 

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Sponsored

Top Esports Athletes Will Compete for National Glory in the Esports Nations..

The new biennial event, starting in 2026, kicks off a monumental next era for esports.
Alex Rodriguez and Marc Lore

Timberwolves Lay Off Dozens After A-Rod, Lore Take Over

Rodriguez and Lore took over the Wolves and Lynx in June.
Sep 13, 2024; New York, New York, USA; United States men's national team head coach Mauricio Pochettino poses for a photo with chief executive officer and secretary general JT Batson, sporting director Matt Crocker, president Cindy Parlow Cone, and MLS commissioner Don Garber after a press conference introducing him as the new head coach for the United States men's national team at Warner Bros. Discovery Hudson Center.

U.S. Soccer, Flush With Cash, Lays Off Dozens

The nonprofit federation is expecting nine figures in revenue this fiscal year.

Why Did ESPN Lay Off Zach Lowe?

The highly respected NBA writer was paid a seven-figure salary.

Featured Today

Eagles-Chiefs Super Bowl Rematch Could Set More NFL Ratings Records

Fox will nationally televise Sunday afternoon’s matchup.
September 10, 2025

ESPN’s ‘MNF’ Ratings Up 8% As NFL Surges to Strong Start

ESPN posts its second-best Week 1 “Monday Night Football” audience.
Sep 7, 2025; Orchard Park, New York, USA; Buffalo Bills fans react during the fourth quarter against the Baltimore Ravens at Highmark Stadium.
September 9, 2025

As Bills Ascend, Their Next Frontier Lies in Canada

Buffalo and the powerful Canadian entity MLSE come together in a new pact.
opinion
September 9, 2025

The Good, The Bad, and The Ugly from NFL’s Week 1 Broadcasts

Many viewers decried the addition of ads to “NFL RedZone.”

Thunder Favored, but Bettors Backing Pacers Big in NBA Finals

The most bet-on exact series outcome is the Thunder winning in five.
Fanduel
March 4, 2025

FanDuel Retains Sports Betting Crown With $14B in 2024 Revenue

The FanDuel parent company posts big increases in revenue and net income.
May 8, 2025

FanDuel Misses Projections As Betting Favorites Dominate 

FanDuel is hit by customer-friendly betting outcomes during March Madness.
Sponsored

How World Series Champ Dexter Fowler Became a Premier League Team Owner

Dexter Fowler discusses navigating retirement and embracing new roles as an owner & investor.
February 20, 2025

Americans Bet $148 Billion on Sports in 2024, Up 23.6%

Both overall handle and revenue rose by more than 20% last year.
DraftKings app
February 14, 2025

Lawsuit Says DraftKings VIP Program ‘Preyed On’ Gambling Addicts

The company’s being sued for negligence and intentional infliction of emotional distress.
August 20, 2024

Beloved ‘Backyard Sports’ Brand Says It Will Relaunch After Decade Hiatus

“Backyard Baseball” was a turn-of-the-century computer hit. 
DraftKings
August 2, 2024

DraftKings Announces Consumer Tax Starting Next Year

The company’s stock fell 5% Friday morning.