Riot Games Is Laying Off Around 80 2XKO Employees Three Weeks After The Game's Launch
•February 9, 2026
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Companies Mentioned
Why It Matters
The layoffs highlight the challenges of scaling new esports titles in a crowded market, signaling that even major publishers must adjust resources quickly to maintain profitability. Continued support for 2XKO’s competitive ecosystem could preserve player investment and protect Riot’s broader esports brand.
Key Takeaways
- •Riot cuts ~80 2XKO staff, half development team.
- •Game's momentum below expectations despite passionate core audience.
- •Riot pledges six months notice pay and severance.
- •Competitive Series 2026 remains on schedule, unchanged.
- •Team will focus on key improvements and community support.
Pulse Analysis
Riot Games’ decision to downsize the 2XKO development team underscores a broader industry trend where publishers are forced to reassess staffing levels shortly after launch. While the title attracted a dedicated niche of fighting‑game enthusiasts, its overall player growth fell short of the thresholds needed to justify a large, permanent crew. This reality reflects the high bar set by established esports franchises and the difficulty of converting early hype into sustained revenue streams, especially when operating across multiple platforms.
The layoffs, affecting roughly 80 staff members, represent a strategic pivot toward a leaner operation that can still deliver promised updates. Riot’s commitment to six months’ notice pay and severance, along with internal transfer opportunities, aims to mitigate morale damage and preserve its reputation as an employer. By concentrating on community‑driven improvements and maintaining the 2026 Competitive Series timeline, the company signals confidence that a focused team can keep the game viable and retain its competitive relevance.
For investors and industry observers, the move serves as a cautionary tale about the financial pressures of launching new esports IPs. It highlights the importance of realistic launch expectations, agile development pipelines, and robust post‑launch monetization plans. As Riot recalibrates 2XKO, the broader market will watch how the title’s ecosystem evolves, offering insights into the sustainability of mid‑tier esports titles in a landscape dominated by heavyweight franchises.
Riot Games Is Laying Off Around 80 2XKO Employees Three Weeks After The Game's Launch
Riot Games is laying off employees on its 2XKO team, just a few weeks after the game's 1.0 launch on PC and consoles on January 20. The company announced this in a blog post, and though it doesn't share how many employees are being laid off, a Riot spokesperson told Game Developer that approximately 80 employees were let go, which is around half of the game's development team.
As for why, Riot says that while 2XKO has resonated with a passionate core audience, "overall momentum hasn't reached the level needed to support a team of this size long term." Despite the layoffs, Riot says it's committed to making key improvements to the game and supporting its community through tournament organizers and local fighting game communities.
"After a lot of discussion and reflection, we are reducing the size of the 2XKO team," 2XKO executive producer Tom Cannon writes in the blog post. "I want you to know that decision wasn't made lightly. As we expanded from PC to console, we saw consistent trends in how players were engaging with 2XKO. The game hasn't resonated with a passionate core audience, but overall momentum hasn't reached the level needed to support a team of this size long term. With a smaller, focused team, we're going to dig in and make key improvements to the game, including some of the things we've already heard you asking for. We'll share some of our plans soon."
Riot's plans for the 2026 Competitive Series are unchanged, Cannon writes in the blog post, adding this decision reflects a shift in how the team operates and isn't a "judgment on individual Rioters or a signal that the journey is over. We're reshaping the team to give 2XKO a more sustainable path forward."
Cannon writes that Riot is committed to helping the affected employees through this transition, "including helping them explore opportunities within Riot where possible, and providing a minimum of 6 months of notice pay and severance where it's not."
The hearts of Game Informer staff are with everyone affected by these layoffs.
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