The impact of the global recession does not only affect the mainstream industry. In fact, the esports industry which is said to have skyrocketed during COVID-19 can also be affected by the economic shocks in 2023, one of which is Faze Clan.

It is reported that this esports organization from North America is not doing well economically, because the company's shares are falling, so that FaZe Clan has to make radical policies, namely mass layoffs or commonly known as layoffs; following the Silicon Valley giant who previously did the same thing. 

On the stock exchange, as of Thursday, February 16, FaZe only has a valuation of US$0.68 per share. This is far less than the all-time high price of FaZe stock which managed to reach over US$20, which was just six months ago.

The decline in FaZe shares has been noticed in the past few months, especially in January, where they were only able to sell shares below the price of US$1, even though this stock had experienced a slight recovery in early February, in the end it was as we see now: The stock price has reached a chronic point.

In an announcement to employees, FaZe Clan CEO Lee Trink explained that despite the "tremendous growth", layoffs were necessary. Trink believes that the company needs to re-examine the existing conditions, in order to formulate the right tactics.

"This financial reduction and increase as a form of discipline, in addition to growing our revenue, will (also) help enable us to turn a profit more quickly, setting up FaZe Clan for long-term success (in the future)."

"As we kick off 2023 with a leaner, more agile organization, our primary focus will be on the core aspects of what makes FaZe FaZe, and what has allowed brands and businesses to grow at the incredible pace over the last five years," said trick.

Trink's statement added that FaZe is prioritizing investing in its talent, as well as building on the growth of its partnership business. Of course, it is a very important thing for the organization. However, it would be a shame if they had to lay off up to 20 percent of their employees.