Industry layoffs continue with OpTic Gaming

OpTic Gaming has been reportedly hit with multiple job cuts to start 2023. The prominent North American organization has... Shubh | 31. January 2023

OpTic Gaming has been reportedly hit with multiple job cuts to start 2023. The prominent North American organization has to let go of multiple employees including the former Brand Manager & Head of Marketing Lindsay Caudill.

OpTic Gaming joins the growing list of companies cutting ties with multiple employees, continuing the depressing trend for esports organizations. The precise number of layoffs is currently unknown, but it was clear that more than one division of OpTic had been hit given the number of farewell posts that numerous OpTic employees from various departments shared on social media.

Initial news about the mass layoffs came via a Tweet posted by former all-rounder, Ian Huston, who was responsible for team management, scouting, and sponsoring events at OpTic Gaming. In a shocked Tweet, Ian said, “In search of Team Operations and Talent Management positions within esports, but open to considering different opportunities and challenges. This is my last day with OpTic.”

With the recession still raging, OpTic Gaming is the latest organization to be hurt

While the news may be discouraging for OpTic Gaming employees and esports fans in general, the organization isn’t alone in facing layoffs. 100 Thieves also had to let go of many employees over the past few weeks.

Around 30 workers were let go by 100 Thieves at the beginning of 2023, many of them were senior-level personnel like chief revenue officer Matty Lee, vice president of account management and integrated marketing Katy Chapel, vice president of IT Nichele Dudley, and director of people Amber Fonts. 

Gaming and Esports aren’t “recession-proof”

Throughout the 2008 financial crisis, many analysts became convinced that the gaming and esports industries were recession-proof since video game sales during the recession greatly outperformed those of other retail items, and because the popularity of esports games was on the rise.

However, despite the positive signs, the gaming and esports industry may not be as recession-proof as previously thought, according to recent events in the space amidst the slow economy. A recent earnings report from Ubisoft revealed a loss of over 500 million euros for the past fiscal year, while Google finally shut down its cloud gaming service Stadia, in addition to Mircosoft’s shocking mass layoff around its various gaming studios.

Furthermore, Allied Esports announced a $3.8 million loss in its Q1 2022 report, while the Australian esports organization ORDER laid off multiple employees. In a similar vein and same year, Guild Esports reported a financial report loss of $6.1 million, while TSM laid off multiple employees. Even Enthusiast Gaming, which operates Luminosity, PocketGamer, and other well-known brands in the market, lost $8.6 million in the first three months of 2022.

Header: OpTic Gaming