This morning, FaZe Clan, the prominent esports organization that went public at a $725 million valuation last year, laid off roughly 40 percent of its remaining staff. The layoff comes during a period of uncertainty about the future sustainability of the esports industry — and the ongoing collapse of FaZe, an organization that observers have long viewed as a bellwether for the industry at large, is yet another sign of the mounting esports winter.
Today’s layoff is FaZe Clan’s second in 2023, following a February layoff of roughly 20 percent of the org’s staff. FaZe CEO Lee Trink informed all current FaZe staffers of the layoff via an email viewed by Digiday that went out at 10:01 a.m. Eastern Time, with Trink attributing the decision to broader economic headwinds, as well as “a 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.” Affected employees were told that they would receive a calendar invite from FaZe human resources at some point today.
“This does not mean that we are abandoning the aspirations we have for FaZe — we are simply setting some of our larger goals aside so we can put our heads down and focus on what’s directly in front of us,” Trink wrote in the email. FaZe Clan representatives did not return requests for comment prior to the publication of this report.