According to Business Insider, the North American esports organization FaZe Clan laid off about 20% of its employees. This reorganization followed another collapse of the company's quotes on the Nasdaq stock exchange.
It is reported that employees have been gradually leaving the North American club since December last year, while the full cycle of layoffs was completed only this month. The staff appeared to have been notified at a general meeting earlier this week. As a result, FaZe Clan joins a roster of other well-known organizations including 100 Thieves, Team Liquid and OpTic Gaming who have also gone on to reduce their staff.
According to a recent report by Forbes magazine , FaZe Clan is in huge financial trouble and could be left without a livelihood as early as 2023.
We must understand that today we operate in a completely different economic environment than even when we went public. This reorientation, plus greater uncertainty in the economy as a whole, has led us to reduce our employee base. We expect the 2022 revenue growth report to show an increase of more than 25% compared to 2021. While such changes are always difficult, I am confident that this new structure, accompanied by a much greater focus on financial discipline and the holistic strategy that we outlined at the AGM, will put the company in a better position for us to capitalize on the many opportunities ahead.
Lee Trink, CEO of FaZe Clan
The exact number of laid-off employees is unknown at this time. However, both LinkedIn and RocketReach describe over 600 employees in the organization, which means up to 120 employees may have been affected by the latest cut.
In January, the price of one ordinary share of FaZe Clan fell below $1, leaving the organization hanging in the balance from a possible delisting. These are not the only problems for the North American club, which has continued to suffer losses since its entry into the stock market last summer.