Layoffs at Version1 and Esports Engine shake the esports industry
Further layoffs have shaken the esports industry. This time around, it has hit esports organisation Version1, CDL team Minnesota ROKKR, and production company Esports Engine.
26th Jul 2023 16:35
Version1 | Esports Engine | Minnesota ROKKR
Layoffs at Version1 and Esports Engine shake the esports industry
Further layoffs have shaken the esports industry. This time around, it has hit esports organisation Version1, CDL team Minnesota ROKKR, and production company Esports Engine.
26th Jul 2023 16:35
Version1 | Esports Engine | Minnesota ROKKR
Further layoffs are once again shaking the esports industry. This time, it has hit esports organisation version1 and its Call of Duty League team, the Minnesota ROKKR. It's also struck esports solutions and production company, Esports Engine.
As the parent company of Esports Engine, Vindex had only been acquired in March of this year by the ESL FACEIT Group. According to some of the laid-off staff, the organisation let go of 65 members of its workforce without notice.
Surprising layoffs at Esports Engine
Multiple former employees of Esports Engine took to social media to talk about their sudden layoff from the company, with many expressing that it came without forewarning.
Programs Operation Manager, Ivy O'Shaughnessy shared on social media: "I was one of the 65 laid off by Esports Engine today. I'm devastated, and blindsided by the lack of warning. To everyone I worked with, you all are so, so amazing."
Other former employees also highlighted that they had been let go without any warning and seemingly out of the blue.
Founder of Esports Engine, Adam Apicella - who had left the company after its acquisition - also shared his thoughts, tweeting: "We were OBJECTIVELY the fastest growing, healthy company in the space for a reason. It wasn’t because of me. It wasn't 'leadership.' It was the people doing the work. Period."
Version1 also cuts back
According to the esports advocate, six employees were let go between the parent company version1 and its Call of Duty League franchise, Minnesota ROKKR.
Unlike Esports Engine, the esports advocate reports that the organisation had informed its employees already in April of this year - indicating that layoffs would be coming in late June to early July.
The report says the company provided a severance package of two weeks and additional compensation for those that have been with the company for longer and had relocated to Minnesota in the last 12 months.
It's no secret that the esports industry has been hit with an economic downturn industry that insiders are calling the esports winter. Worryingly, this is a period during which economic hardship forces the consolidation of businesses amid dwindling capital injection into the sector.
With revenue streams which are still largely reliant on marketing dollars which historically dry up during periods of market recessions, the impact has been felt over the last couple of months, with many businesses either shrinking or closing operations entirely.
About The Author
Sascha Heinisch
Sascha "Yiska" Heinisch is a Senior Esports Journalist at GGRecon. He's been creating content in esports for over 10 years, starting with Warcraft 3.
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