The hugely influential esports organization FaZe Clan has announced that it will lay off 40% of its workforce. This announcement was made as the brand has faced financial challenges that have seen its slot price slide to well below $1 to just $0.58 at the time of writing.
The move marks the second time that FaZe Clan have announced widespread redundancies this year. February saw the organization shedding 20% of its staff and there are fears that there could be more to come.
FaZe Clan’s CEO, Lee Trink, said that the employees would shortly be notified of the termination of their working contracts. He added that the organization would be, ‘setting some of our larger goals aside so that we can put our heads down and focus on what’s directly in front of us.’
This is probably referring to the financial problems that have beset the pro gaming company in recent months. FaZe Clan was publicly listed in 2022 at a valuation of $725 million but has struggled to gain approval from the market as it copes with numerous challenges.
As well as the struggles with the difficult economic circumstances, FaZe Clan has been repeatedly accused of fostering a negative working environment. With multiple reports of toxicity, misogyny and homophobia from the social media accounts of various pro graming starts, the brand has struggled to overturn the negative narrative.
It all comes as a bitter fall from grace from one of the planet’s most illustrious esports organizations. FaZe Clan was established in 2010 and gained an impressive reputation both for its playing prowess, as well as the vigor with which it monetized its brand name. But with financial problems sure to affect the team’s performances, it could be a tricky few months ahead for FaZe Clan.
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