ESL FACEIT Group is expected to lay off between 250 and 350 employees

ESL FACEIT Group is expected to announce the layoff of around 250 to 350 employees, according to exclusive information published by Richard Lewis. The 2022 merger of ESL and FACEIT, following their $1.5 billion acquisition by Savvy Group, seems to be struggling to reach the long-awaited profitability.

According to Lewis’ sources, EFG is set to cut around 50 jobs on the FACEIT side, particularly within the marketing, growth, and competitive integrity teams. While significant, these cuts pale in comparison to what’s reportedly happening at ESL. As one source quoted in the article put it: “For FACEIT it looks like it will have a significant impact.”

As Lewis explains in his report, ESL could be hit with between 200 and 300 job cuts, affecting departments across the entire company, though specific details remain unclear. This isn’t EFG’s first round of layoffs—far from it. Back in July 2023, 65 people were let go from Esports Engine, a company previously acquired by ESL FACEIT Group. Six months later, in February 2024, EFG announced it would cut nearly 15% of its total workforce, representing roughly 300 people at the time.

With this new wave, close to 700 people may have been affected by layoffs since Savvy Group’s acquisition. The company is backed by the PIF (Public Investment Fund), Saudi Arabia’s sovereign wealth fund.

Unsurprisingly, EFG remains focused on the success of the Esports World Cup, currently taking place in Riyadh and running until the end of August. According to Lewis’ article, the company has even offered freelance roles to former employees around the event to help ensure the success of its biggest project to date. In addition to these "new roles," sources cited in the article say that the severance packages offered are “generous.”

All of this seems to stem from the company’s ongoing struggle to find a sustainable path to profitability—even in the long term. As Richard Lewis reports, EFG was already operating at a loss prior to the acquisition, and is now heavily impacted by a drop in sponsorship revenues, a major blow to its long-term plan.

One source noted: “The original plan was to turn the company round and have it be profitable in ten years,” but recent struggles have forced a major shift: “When they saw how much it was losing, that plan turned into two years—so 2026 is make or break. It’s possible if these cuts don’t work, then they might consider selling parts of the business and only retaining the parts that work… […]”

The situation appears so dire that some EFG employees told Lewis they feel compelled to attend events like the Esports World Cup out of fear that this could be the company’s swan song. As one person put it: “There’s a sense this is the last dance of ESL as we know it.”

EFG (ESL FACEIT Group) sent this statement to Sheep Esports and Richard Lewis, following the republication of Richard Lewis' article:
"EFG has experienced a period of significant growth driven by multiple strategic acquisitions. Whilst this has opened up many new opportunities to grow esports globally, it has also brought with it complexity. To ensure EFG is fully focused on the most meaningful growth opportunities ahead, we have conducted a careful review of our strategic priorities. This process allows us to realign resources, ensuring we have the right teams and capabilities in place to lead, innovate, and deliver long-term success. As a result of this, some of our employees will unfortunately be impacted. We thank them for their hard work and dedication to the company, and wish them well for the future. Although team adjustments have taken place within the digital platform and technology departments, the ESL division itself has not been affected. This means the total number of redundancies is significantly lower than what has been previously reported.”