Community Gaming, a blockchain-based gaming platform, recently made headlines after announcing the layoff of 17 employees. This decision came as a result of economic challenges faced by the esports industry, which has been hit hard by the ongoing pandemic.
The company laid off 17 employees
Community Gaming is a platform that addresses the issue of delayed or non-existent payouts in esports tournaments. The platform leverages blockchain technology to ensure secure and automated payouts to winning participants.
In April 2022, the company raised $5 million in a funding round during the crypto bull market. This undoubtedly boosted the company’s growth as it expanded its services to new regions and improved user experiences.
In the past year, Community Gaming has witnessed a surge in its user base and tournament participation. However, despite this growth, the esports industry, as a whole, has been facing economic challenges due to the pandemic.
Esports firms continue to face challenges
The COVID-19 pandemic has impacted several industries worldwide, and esports is no exception. The cancellation of live events, dwindling sponsorships, and a general lack of interest from traditional sports audiences have all contributed to the downturn in the esports industry.
As a result, Community Gaming had to re-evaluate its goals and restructure its roadmap to ensure its sustainability in the long run. This decision led to the layoffs of 17 employees. The company stated that it would be offering severances and support to help the affected employees transition to new roles.
Community Gaming isn’t the only esports organization that has faced challenges during the pandemic. FaZe Clan, a popular esports organization, laid off multiple employees in 2020.
Activision Blizzard, the parent company of Overwatch League and Call of Duty League, laid off several employees in 2019. Similarly, 100 Thieves and TSM also faced layoffs in recent times, citing economic challenges as the primary reason.
