FaZe Clan Lays Off 20% of Staff Due to ‘Uncertainty’
As FaZe Clan’s stock price plummets, the firm has taken another turn for the worse, issuing layoffs for twenty percent of its staff. This news came following an update circulated by the CEO, Lee Trink, who stated that FaZe Clan was experiencing ‘incredible growth’ that was bringing in a steady and positive amount of revenue. Now, in attempts to circumvent uncertainty and restructure the organisation, twenty percent of the employee base has been let go.
In 2022, FaZe Clan went public on the NASDAQ, becoming the first organisation of its type to do so. It was a promising start for the ‘lifestyle and entertainment’ brand, but things quickly turned sour. At the moment, barely six months after listing, FaZe Clan is at risk of being delisted, owing to a constant crashing of the firm’s stock price. At present, FaZe Holdings Inc’s stock value sits at just 0.68 USD, which is a stark comparison to its ATH of 17.43 USD.
Can FaZe Clan Weather the Storm?
Last year, there were claims that FaZe Clan was worth almost $1 billion. It was on a path of rapid and monumental expansion, crossing over into several industries and picking up some stunning, world-class partnerships and sponsorships. Most recently, FaZe partnered with the likes of Porsche, to name one of the biggest brands. However, there are ongoing fears and concerns that FaZe is something of a ‘ticking time bomb’, with a massively uncertain future and constant controversies surfacing.
In 2021, the firm found itself at the heart of allegations that it – or its members – had taken part in a malicious cryptocurrency ‘pump-and-dump’ scheme. In the same year, despite reporting $52 million in gained revenue, FaZe Clan also reported a $37 million global loss. Furthermore, while 2022 was a banner year for the organisation’s esports teams, there’s something of a drought at present that is seeing any FaZe-branded teams struggle to gain ground.
Most recently, Atlanta FaZe claimed a win at the Call of Duty League Major II event, which was the squad’s first victory in over a year.
There are hopes from FaZe Clan’s leadership that the reduction in staff will encourage a faster path to profitability. That’s a hard ask for the industry, as almost every current esports-focused organisation is yet to discover the key to becoming truly profitable.
In recent weeks and months, there have been widespread layoffs around the industry. From OpTic Gaming to Xbox and from Bethesda to Riot Games, redundancies have been counted in the tens of thousands. While FaZe Clan isn’t exempt from the layoffs, the message of incredible growth is a strange one to put out while staff are being actively dismissed.