FaZe Clan, one of the most popular esports organizations in the world, has seen its stock price hit a new all-time low following news of layoffs at the company.
On February 17, it was reported by Business Insider that FaZe was laying off around 20% of its staff, with an internal memo from CEO Lee Trink citing “uncertainty in the overall economy”.
The decision was made despite the company experiencing “incredible growth,” according to Trink, who stressed that “financial discipline” will be a greater focus of the organization moving forward.
The news hit the stock price of FaZe Holdings, which is listed on the NASDAQ exchange. The price of shares had already been tumbling since mid-2022.
FaZe stock hits new all-time low
At the close of trading on Thursday, February 16, FaZe Holdings sat at $0.68 per share. This is a far cry from the stock’s all-time high of over $20 – only six months ago.
FaZe stock had been trading below $1 in late January, although it did make a slight recovery at the beginning of February – staving off possible delisting risks by bouncing back over the $1 mark.
However, the latest hits with layoffs have seen the price tumble again, dropping below $0.70 for the first time at trading close.
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The drop marks a 95% decline in the past six months.
But, while the outlook remains mired in uncertainty, FaZe will hope that the layoffs, plus whatever “financial discipline” is planned, will, eventually, put them on a path to profitability.
They still command an audience of millions of fans, many of whom would consider themselves loyal to the FaZe brand. But, the problem for FaZe, like most esports orgs, is monetizing these fans.
From FaZe’s YouTube channels, the average revenue per subscriber is only $0.36, according to Forbes, and much of this will be retained by the creators, rather than the organization.
Of course, FaZe is not alone in making layoffs in gaming and esports. OpTic Gaming, 100 Thieves, and TSM have all cut staff, in addition to many game devs and publishers.