FaZe Clan is synonymous with esports. The gaming organization is one of the earliest supporters of the competitive gaming industry and has since built a loyal fanbase of fans from all over the world. But, in recent years, FaZe Clan hasn't enjoyed the best of luck, at least financially. Most recently, FaZE Clan had to let go of its workers. Now, they're gutting almost half of their employees due to financial concerns.
DigiDay broke the news on social media before FaZe Clan itself confirmed the mass exodus, citing the move as part of its efforts to "align our cost structure with our focused near-term priorities around brand sponsorship and esports growth."
This revelation is making fans worry about the future of the esports organization. It's particularly concerning as FaZe Clan a team known for its performance in online games. It currently fields one of the best CS:GO lineups that pulled in the $1.2 million prize purse for winning the ESL Pro League Season 17 and the Intel Grand Slam Season 4 in March. If the company is firing employees amidst a successful run for one of their teams, some are concerned that the days of the organization's star-studded lineups are numbered.
However, this isn't unusual in esports teams. Most grow up very fast after a massive influx of cash. Many underestimate the costs of running the organization, resulting in what's currently happening to FaZE Clan.
Even so, we can't just deny that the optics of what's going on in FaZe Clan doesn't paint a good picture. The stock price has since bottomed out from its $725 million valuation last year as it's currently listed at $0.59 after opening at $13 a share.
FaZe Clan is assuring fans that they're not going away at all. Despite all the negative news, FaZe Clan's name as well as its reputation still have to mean something, especially in esports. Thus, it will keep trying. Investors are also expected to trust FaZe Clan to weather the storm.
Only will tell if FaZe Clan can bounce back and make a good run, or so to speak.
Speaking of Counter-Strike, a sequel to Valve's popular online shooter is currently undergoing testing. Counter-Strike 2 is expected to launch sometime later this year.
