The downsizing of Version1 and Esports Engine organizations is an example of Esports winter.
ESL FACEIT Group bought Esports Engine in March of this year. However, along with the scandal of suddenly firing 65 employees without prior notice, the Minnesota ROKKR team of the Call of Duty league also fired six employees. The difference is that in April of this year, the organization informed its employees that they would be laid off from the end of June to the beginning of July.
The company said it provided two weeks of pay, bonuses, packages, and additional compensation to those who had been with the company for a long time and moved to Minnesota within the last 12 months.
The global economic recession after the pandemic has also affected the esports industry; many organizations have laid off their employees, merged, and even stopped operations, and some investors are withdrawing their investments. This phenomenon is called Esports Winter by esports experts.
As the circulation and flow of money in the esports industry shrinks, economic hardships have forced businesses to consolidate.
