• Loading stock data...
Friday, March 29, 2024
2024 Best Venues nominations are open now through April 8! Submit Now

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

The NFLPA Report Card Is Doing Exactly What It Was Intended For

Robert Kraft hasn’t gone to school in nearly 60 years, but on Tuesday the Patriots’ owner found himself talking about his report card. 

How Lack of Planning by NCAA, Gonzaga Led to Racial Abuse of Utah Athletes

The NCAA gave Gonzaga a waiver to place teams in an extremist hotbed.

NCAA President Calls for Nationwide Ban on College Prop Bets

The NCAA president is reacting to the recent betting turmoil in sports.

It Remains Unclear Which Authorities Shohei Ohtani Has Reported Theft of Millions to, If Any

A federal investigation is ongoing, but it’s not clear what it covers.
podcast thumbnail mobile
Front Office Sports Today

Why the Timberwolves Sale was Called Off

0:00
0:00

Featured Today

March 22, 2024, Brooklyn, NY, USA; Northwestern Wildcats guard Brooks Barnhizer (13) and Northwestern Wildcats guard Boo Buie (0) react in overtime against the Florida Atlantic Owls in the first round of the 2024 NCAA Tournament at the Barclays Center.
March 27, 2024

‘An Expensive Game’: March Madness and NIL Collectives Are Intertwined

At schools nationwide, collectives are fueling NCAA tournament runs and vice versa.
Iowa’s Caitlin Clark (22) waits to be announced in the starting lineup against West Virginia in a NCAA Tournament round of 32 game Monday, March 25, 2024 at Carver-Hawkeye Arena in Iowa City, Iowa.
March 26, 2024

The Women’s Trading Card Market Is Overlooked. Can Caitlin Clark Change That?

Traditionally, women’s sports cards have been a marginal part of collectibles.
The Sports Illustrated cover signed by Derek Jeter and Alex Rodriguez, February 27, 2019, at Don & Charlie's, 7501 E. Camelback Road, Scottsdale. Don Charlie S
March 24, 2024

Everything You Need to Know About the Ongoing ‘Sports Illustrated’ Saga

Understanding the strange state of affairs for the nearly 70-year-old publication.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Live Nation
Multiple - USA Careers
Adidas
Multiple - USA Careers
Spotify
Multiple - USA Careers
Sponsored

How Daily Fantasy Sports Solved NBA Fantasy

The remarkable growth of the #1 Discord sports server in the world.
Oct 5, 2021; Kansas City, Missouri, USA; Bob Kendrick, president of the Negro Leagues Baseball Museum in Kansas City, points to the lettering outside of the museum Tuesday.
February 28, 2024

How Do You Keep Negro Leagues Baseball History Alive? Put It in a Video Game

Negro Leagues Baseball Museum attracting increased donations, visits from ‘MLB The Show.’
February 29, 2024

Electronic Arts’ Layoffs Signal Ongoing Evolution, Struggles

The company is set to make a second major round of staff cuts in the last year.
Sponsored

How Daily Fantasy Sports Solved NBA Fantasy

The remarkable growth of the #1 Discord sports server in the world.
Sony-Playstation-Demo-Booth
February 27, 2024

Sony to Lay Off 900 From PlayStation Team After Missed Sales Target

Cuts come amid a tough stretch for the gaming industry.
EA Sports
February 15, 2024

EA Sports: Summer Release for Long-Dormant College Football Video Game

Ed O’Bannon’s historic lawsuit led to the shuttering of EA Sports’ popular college games.
Gatorade
February 14, 2024

Was the Gatorade Color Compromised Before Super Bowl LVIII Kickoff?

Multiple gambling companies saw a sharp spike in the color purple prior to Sunday’s kickoff.
Reba McEntire Super Bowl
February 12, 2024

Reba McEntire Repeated ‘the Brave’ in the National Anthem, Sending Prop Bettors Spiraling

BetMGM paid bettors on both the over and the under.