Enthusiast Gaming Lays Off 25% of Workforce

Enthusiast Gaming Lays Off 25% of Workforce

News by Roberto Orosa
Published: March 08, 2024

Canadian digital media company Enthusiast Gaming is laying off approximately 45 employees, constituting around 25% of its workforce, in a new restructuring effort.

This marks the third round of layoffs within a year for the video game-centered publication, which faced financial challenges within the gaming and media industries.

According to an email obtained by Adweek, affected employees were notified of the layoffs via email, giving them the option to schedule a one-on-one call with the HR team through Candedly. 

Several impacted employees have already aired their grievances on social media.

A company spokesperson confirmed the news, citing the need for strategic cost reduction in response to market dynamics.

"The gaming, media and wider technology landscape continues to be in a state of flux, with many industry organizations taking actions to consolidate operations or adapt organizational strategies to meet the new market realities,” shared the Enthusiast Gaming representative.

“Today, Enthusiast Gaming similarly undertook a strategic cost reduction program after a thorough organizational review, a part of which included the net reduction of approximately 25% of Enthusiast’s workforce," the spokesperson added.

Enthusiast Gaming Operates at a Loss

Enthusiast Gaming primarily relies on advertising revenue (90%), with the remainder coming from its esports and entertainment division ($2 million), as well as subscription offerings ($3.7 million).

Despite generating $45.6 million in revenue in its most recent quarter, the company posted a notable loss of $59 million. 

Enthusiast Gaming's executive team has also experienced changes, with the appointment of Nick Brien as CEO in March 2023, followed by his departure in January. Adrian Montgomery, the current chairman of the board, assumed the interim CEO role.

The company's executive reordering further included the hiring of Felicia DellaFortuna as its new chief financial officer and the departure of key executives in recent months.

"While we know that change can be challenging, we believe that this strategic restructuring is a necessary step to secure our position as a leader in the industry and create long-term value for our stakeholders," stated an internal memo from the company.

Meanwhile, BuzzFeed has sold Complex for $108.6M.
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Editing by Katherine 'Makkie' Maclang

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