More Esports Layoffs: Gamurs Group layoff a large proportion of the workforce

The Gamurs group laid off many of its workforce yesterday due to the recent collapse of Silicon Valley Bank. With the layoffs, Gamurs joins an extensive list of esports and gaming companies to either seize operations or scale down due to the economic crisis. Gamurs Group has not issued an official statement on the situation. The news of layoffs came from multiple freelance editors and writers tweeting about the layoffs. 

Gamurs Group Layoffs:

Gamurs is a parent company for 15 gaming media outlets, including Dot Esports, Upcomer, Pro Game Guides, etc. According to a list compiled by GinxTV editor Rabia Sayal, the number of laid-off employees exceeds 50. This includes freelance editors, writers, and multiple other departments.

Excluding the already reported 50 employees, there are additional layoffs. George Geddes, a frontrunner in Valorant investigative reporting, has been confirmed as one of the layoffs from Dot.

George was told the layoffs were to protect Dot from the Silicon Valley Bank crisis. He also explained the situation in a livestream and said his position was eliminated from Dot. George also claimed Dot would likely shut down the investigative unit.

As reported by Ethan Gach, Senior reported for Kotaku, Gamurs CEO Riad Chikani addressed the recent layoffs in an internal mail. Gamurs CEO mentions the group invested heavily in growing the content and editorial department. But found 1 out of three articles produced did not drive traffic. Since the investment did not deliver profitability, the group has laid off multiple employees. The email also mentions the collapse of the Silicon Valley bank as one of the reasons for cutting off employees to improve "operational efficiency."

While the decision to adopt an unsustainable growth strategy was from the upper management, the affected were the freelancers working. Additionally, there were multiple accounts of former workers claiming no prior warning or indication for the layoffs.

The Gamurs layoff is second, where the workers were notified and locked out of their work accounts without notification. Gamurs staff will get severance, but the freelancers will be exempt from the severance and Health Insurance.

Esports and Gaming Layoffs across:

Gamurs layoffs come after the Guard, Beyond The summit, and more. After the Gamurs Group layoffs, Twitch also announced laying off 400 employees. The reason behind the Twitch layoffs is the current macroeconomic situation. Faze Clan, one of the frontrunners is also currently falling. After seeing a high of $20, the Faze valuation has fell to $0.43.

While Faze's situation is completely different, many esports and gaming-related issues stem from the Silicon Valley banking crisis. Additionally, many companies invested heavily to capitalize on the growing market in 2021-22, expecting increased results. But the unreal expectations did not come to fruition, leading to multiple investors backing out and layoffs.

Additionally, multiple companies are facing a crisis. In the light of the situation, Riot Games has been actively looking for additional financial instruments. One of the instruments include previously prohibited betting sponsors. With the Esports winter taking lives left and right, we must wait for what's in store for the Esports and Gaming industry.

Credits: Gamurs Group

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