FaZe Clan is laying off 40% of its staff in yet another round of staff reductions for the public company, according to a report from Digiday.
FaZe has been criticized from all corners of the gaming and esports communities, including former members of the company, for its decision to go public.
The company went public in 2022 at a $725 million valuation, and its current stock price is stuck below $1.
With its financials public, fans and investors have been able to peek behind the curtain and see how much money the organization has spent and, crucially, how much they are making.
With their books now open for the world to see, FaZe is seen in the esports scene as an illustration of the current economic downturn in the industry. Over the course of 2022, FaZe reported $53 million in losses despite some increases in revenue.
FaZe Clan’s downward spiral continues
As a result of this downturn, FaZe Clan is cutting 40% of its remaining staff, according to a report from Digiday.
The company’s staff was notified at 10:01 a.m. on May 19 of the layoffs, according to the report.
This is FaZe’s second wave of layoffs in 2023, as the company let go of about 20% of its staff in February of this year. FaZe released its 2023 first-quarter SEC filings recently, and it showed another quarter of losses for the company. The net loss for FaZe at that time was $14.04 million as its revenue declined about 20% from its 2022 fourth-quarter filing.
The company also lost one of its high-profile heads, Snoop Dogg, in March. The famous rapper and entrepreneur left the company “effective immediately” on March 29, as was revealed in FaZe’s 2022 fourth-quarter fillings.
FaZe has not addressed the layoffs publicly and has not responded to Dexerto’s request for comment on the report at this time.
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