FaZe Clan Faces Further Turmoil: Massive Layoffs Amidst Public Backlash and Financial Struggles
In yet another round of staff layoffs for the publicly traded corporation, FaZe Clan is firing 40% of its employees, according to a Digiday report. FaZe’s move to go public has drawn criticism from all corners of the gaming and esports industries, including former business employees. The company went public in 2022, valued at $725 million, and its stock price is currently below $1.
With its financials available to the public, the organization’s supporters and investors have had a behind-the-scenes look at how much was spent and, more importantly, how much was made. FaZe is used as an example of the current esports industry economic crisis because their books are now publicly available. FaZe claimed $53 million in losses for 2022 despite some sales growth.
The downward spiral of FaZe Clan continues
According to a Digiday story, FaZe Clan is laying off 40% of its remaining employees due to this slowdown. According to the article, the company’s personnel received notice of the layoffs at 10:01 am on May 19. FaZe laid off around 20% of its workforce in February of this year, making this the second round of layoffs the firm will undergo in 2023. Recent SEC filings from FaZe for the first quarter of 2023 revealed another losing quarter for the business. FaZe reported a financial loss of $14.04 million at that time due to a 20% reduction in revenue from the fourth quarter of 2022.
Snoop Dogg, another prominent business executive, passed away in March. According to FaZe’s 2022 fourth-quarter filings, the well-known rapper and businessman quit the organization on March 29 “effective immediately.” The company stated on Twitter that it will release an SEC filing later today, detailing the employee decrease, in response to the report.
“As highlighted in our shareholder letters, this proposal represents the most recent advancement in our efforts to align our cost structure with our targeted near-term priorities of brand sponsorship and esports growth. We have implemented material cost reductions over the past few months to conserve capital, and we’ll keep working to put FaZe in the best possible position to pursue future profitability, according to FaZe.
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