Smite developer Hi-Rez Studios lays off employees to ensure 'long-term success'

Since the beginning of 2023, the videogame industry has been in a state of malaise that shows no signs of abating. Mountaintop Studios, Airship Syndicate and Evening Star were among the companies that laid off employees in September. Microsoft, Midnight Society Lost Boys Interactive Ballistic Moon and Rocksteady also did so. On October 1, we're back at it: Hi-Rez Studios CEO Stewart Chisam announced the "difficult, but necessary" layoffs of an unspecified amount of employees. The cuts were made to "ensure Hi-Rez’s long-term viability."

Chisam, writing on X, said that the layoffs were being made "across Hi-Rez", but "will disproportionately affect those in marketing and publication roles, as well some from our Evil Mojo G&A and Titan Forge Divisions." The game team roles that are impacted disproportionately affect our team who work on cosmetic skin content and systems features.

Hi-Rez divided itself into separate studios in 2018. Titan Forge developed the Smite game, while Evil Mojo did Paladins. G&A is Hi-Rez’s general and administrative division.

Chisam explained that the move was made after a thorough review of their strategy and operations. "In the games division, we decided to focus our efforts exclusively on Smite 2 outside of small teams that support light updates for Paladins or Smite 1.

"Within Smite 2 we are almost exclusively focusing on gameplay development in near-term--such new modes and Gods--aswell as quality improvements-. Over some cosmetic and monetization-related features previously planned to lead up to the game's Free-to-Play launch next year."

Smite 2 was released in early access on Steam last August, to a decidedly mixed reception. PC Gamer contributor Sarah Richter thought it was promising, but lacking in certain meaningful ways. It's also entering a newly resurgent MOBA environment, which is more challenging now that Valve has recently entered the field with Deadlock.

Smite 2 is putting up a pretty decent number of concurrent players for an early-access MOBA. However, it's still well behind the original Smite. This suggests that many players aren't keen to make the switch at this time.

Chisam acknowledged that the layoffs had a "real human impact," saying that each person who was laid off "is a talented, dedicated professional who has put their heart and soul into the games." He also said the cuts "reflect a failure of my leadership and one for which i take personal responsibility." It was not made clear how he would take responsibility.

Chisam wrote: "While these changes may be difficult, we feel they are necessary. We will emerge stronger as a result." "We are grateful for your continued support and patience during this difficult period. We also appreciate the support and gratitude you show to those employees who have been impacted by these changes and have dedicated so much time and passion to entertain us."