Financial problems at FaZe lead to layoffs of 40% of staff

FaZe Clan’s financial problems have taken a heavy toll on its workforce. It has recently been reported that 40%... Maria | 20. May 2023

FaZe Clan’s financial problems have taken a heavy toll on its workforce. It has recently been reported that 40% of the esports organization’s human talent has been laid off.

According to information published by Digiday, the North American esports organization has begun a wave of layoffs.

The financial crisis at FaZe Clan

It should be recalled that many esports organizations have been affected for some months by the global financial crisis. Unfortunately, faZe Clan is one of those organizations that is suffering strong consequences.

The organization has been delisted from the stock exchange, which has brought a lot of criticism towards FaZe Clan. The company went public last year, but its share price dropped below $1. As a result, FaZe Clan’s partners decided to take the organization private again.

However, the organization had all its financials publicly available, so everyone could know what FaZe Clan’s profits and losses have been.

FaZe Clan’s current situation has made the organization a financial failure in the esports industry. During 2022, FaZe could be seen as FaZe reported losses of $53 million. In 2023, they are still on the same path, and in the first quarter of the year, they have already reported significant losses.

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Credits: FaZe Clan

Consequences of FaZe Clan’s financial crisis

According to information revealed by Digiday, FaZe Clan is apparently experiencing another wave of layoffs. However, this wave of layoffs is much larger than the first one since 40% of the workers are being laid off.

On the other hand, it is said that the layoffs took place yesterday, May 19, in the morning.

Let’s remember that FaZe Clan experienced the first wave of layoffs last February, where approximately 20% of employees were left out of the organization. Now with the first quarter’s losses, the organization needs to rethink a strategy to continue operating.

On the other hand, in March, Snoop Dogg, one of the top managers of FaZe Clan, left the organization. Seeing FaZe Clan is difficult; the rapper decided to leave the company.

FaZe Clan has not commented on the financial report for the first quarter of 2023. However, it is expected to publish a list of all employees who have been terminated shortly.

According to a statement from FaZe Clan, the organization must now cut costs to continue operating. In this way, the organization’s directors are looking for the best way to escape this difficult situation and return to an economically prosperous organization.

Header: FaZe Clan