As the ongoing financial struggles continue across the esports industry, one of the most prolific production companies has unfortunately made mass layoffs. It was recently revealed that Esports Engine, which rose up from MLG several years ago to become one of the best-known tournament organisation firms, has laid off up to sixty-five employees. This news comes mere months after the firm’s parent company, Vindex, was acquired by the esports titan, ESL FACEIT.

There has been no official statement from those left at Esports Engine, and by all accounts, it seems that the layoffs were totally and utterly unexpected. In a shared sentiment in social media circles, the term ‘blindsided’ has been prevalent, with many ex-employees coming together to share their shock and upset at the sudden revelation.

To The Roots

It was revealed that even the company’s founders were impacted, with some veterans of Esports Engine being directly affected by the layoffs. An email was sent to the employees that offered little in the way of an in-depth explanation as to why so many employees were being suddenly dismissed. This email was shared by Hun2r on Twitter, and it read:

‘Due to significant changes to planned esports programs that have resulted in material changes to our business outlook, Esports Engine has made the very difficult decision to reduce the size of the organisation. This email is to confirm that your position at Esports Engine has been eliminated. Today, July 25 2023, will be your last working day with us as part of this unfortunate downsizing process’.

And like that, 65 employees were instantly put out of work.

Up until now, Esports Engine has been best known for its work with the Call of Duty League, the Apex Legends Global Series, and the Halo Championship Series, among many other tournaments. It has been confirmed that no events managed or structured by Esports Engine will be impacted moving forward, though. That includes the ALGS Championship that’s due to take place in Birmingham in September and the World Series of Warzone Global Final taking place in London around the same time.

Concerns

It’s unknown where Esports Engine’s future rests at present. In reports, it has been revealed that there are contracts up for discussion between Esports Engine and publishers, and certain competitions – such as those tied to Apex Legends – could pivot to using a different organiser, such as PGL. If this were to happen, it could be catastrophic for the already downsized firm. It’s tough to tell what’ll happen next, and only time can tell.