The company already laid off staff members in February.
FaZe Clan is set to lay off 40 percent of its staff just months after a previous round of layoffs earlier this year.
The company announced today it will be reducing its workforce by approximately 40 percent just three months after laying off 20 percent of its staff in February. FaZe confirmed the move on Twitter not long after a report by Digiday revealed the news.
“This plan shows the latest progress from our efforts to align our cost structure with our focused near-term priorities around brand sponsorship and esports growth, as discussed in our shareholder letters. In the last several months we have executed on material cost reductions to protect capital and we will continue to work toward putting FaZe in the best possible position to drive towards future profitability,” FaZe said in its statement.
FaZe’s stock has bottomed out after the company went public at a $725 million valuation last July. The stock fell 73 percent in just two months last year, and its price is currently listed at $0.58.
“This does not mean that we are abandoning the aspirations we have for FaZe we are simply setting some of our larger goals aside so we can put our heads down and focus on whats directly in front of us, FaZe CEO Lee Trink wrote in an email to staff, according to Digiday.
In a statement to Dot Esports, FaZe referred to the tweet from FaZe Comms, also saying that “Lee Trink will comment on top momentarily” and that the “full memo to staff will be in the 8K thats going up shortly as well.”