Riot Games, the renowned developer of popular games such as “League of Legends” and “Valorant,” has unveiled plans to cut approximately 11% of its global workforce, amounting to around 530 positions. This move, announced on Monday, is a significant downsizing effort driven by the company’s aim to refocus on essential aspects of its business.

Owned by Chinese tech giant Tencent, Riot Games emphasized the necessity to concentrate on elements that deliver the most value to players and cited spiraling costs and unsuccessful ventures as factors behind the decision.

The Los Angeles-based company, known for its massive success with “League of Legends,” acknowledged that it had aggressively pursued new avenues for growth since 2019. This expansion included efforts to diversify its offerings and the doubling of its size within a few years. However, the company now recognizes that it may have spread itself too thin, lacking a sharp enough focus.

In a memo to employees, Riot Games CEO Dylan Jadeja outlined the company’s journey since 2019, stating that they had “expanded our global footprint, changed our operating model, brought in new talent to match our ambitions, and ultimately doubled the size of Riot.” However, he acknowledged that they are now a company without a clear focus, admitting to having “too many things underway.”

The downsizing will specifically impact the teams working on “Legends of Runeterra,” an online card game, and “Riot Forge,” a subsidiary focused on developing new games set in the “League of Legends” universe. Riot Games has reassured that the priority moving forward will be on the teams behind its core games.

This move by Riot Games reflects the broader trend of restructuring and downsizing in the tech industry, where various companies, including Google and Amazon, have announced significant layoffs in the early weeks of 2024.