Riot Games

History

2024: Reduction of 11% of the state

On January 22, 2024, video game developer Riot Games, owned by the Chinese corporation Tencent, announced its intention to carry out a reorganization aimed at improving its financial situation. The initiative provides for a reduction in the number of personnel by about 11%.

The changes were announced by Riot Games CEO Dylan Jadeja. According to him, the company has been actively developing since 2019, expanding its global presence and increasing its staff. However, this led to the number of projects overgrowth, and some of them did not meet expectations. As a result, costs rose to such an extent that they actually "became unsustainable." The company has tried to address the issues in a variety of ways, including tighter cost controls and the suspension of hiring new professionals. However, these measures were not enough, and Riot Games was forced to downsize.

Riot Games to cut 11% of staff

We are not doing this in order to reassure shareholders or achieve some kind of quarterly profit indicator - we made this decision because it is necessary. That's what we need to do to ensure long-term business prospects, "Jadeja says.

As part of the reorganization, approximately 530 people will lose their jobs. The layoffs will primarily affect those teams that are not engaged in the development of basic products. Reduced employees will receive severance pay in the form of salary for six months and cash bonuses. In addition, Riot Games will provide outgoing workers with health benefits and employment assistance in a new location, including career coaching and resume drafting. Employees who are laid off will also be able to keep the peripherals they use, such as a headset, mouse and keyboard.^[1]

2021: $100 million payout for discrimination and sexual harassment at the company

At the end of December 2021, it became known that Riot Games, known for creating the League of Legends game, will pay $100 million in a discrimination and harassment case. The lawsuit was filed in 2018 by former employees of the company who encountered problems during their work activities. The company will pay $80 million to members of the class action and about $20 million to pay for the plaintiffs' legal services.

Riot Games has been accused of sex discrimination as well as sexual harassment and misconduct within the company. The lawsuit was followed by two investigations by state agencies. California The lawsuit was filed after game news site Kotaku published a damning article about the culture of sexism at Riot Games, which manifested itself in workplace behavior ranging from unwanted courtship and harassment to the recruitment and promotion process, in which women's candidacies were weeded out for not being sufficiently addicted to games and the esports league.

Game developer Riot Games will pay $100 million for discrimination and sexual harassment at the company

Riot Games agreed to settle the lawsuit in 2019 for $10 million, but the California Department of Fair Employment and Housing (DFEH) intervened in the case, blocking the agreement with a court statement in which the department claimed that the victims were entitled to up to $400 million. On December 27, 2021, DFEH published a press release recognizing the settlement.

As part of the settlement, Riot Games also agreed to certain reforms to workplace policy. They include increasing the transparency of the pay scale for job seekers, not using a history of previous salaries to set employee salaries or appoint positions, and creating a channel for current or former temporary contractors who can apply for jobs at Riot Games. The publisher will also implement policies requiring the presence of a woman or community member on staff selection boards.

This is a great day for Riot Games women - and for women of all video game and technology companies - who deserve a workplace free from harassment and discrimination! We highly appreciate Riot's introspection and work since 2018 to become a more diverse and inclusive company, "said plaintiffs' attorney, employment and sexual harassment lawyer Genie Harrison[2]

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