German esports and gaming marketing agency Freaks 4U Gaming has laid off an undisclosed number of employees.
The announcement came directly from the company’s Chief Executive Officer, Michael Haenisch, via a post on LinkedIn.
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In the statement, Haenisch shared that the decision was made to ensure operational continuity of the business: “Like many companies in gaming and esports, Freaks 4U Gaming GmbH experienced tremendous growth during COVID, followed by post-pandemic reset coupled with the challenging macroeconomic environment worldwide.
“In the past couple of years, we have been operating in a challenging market that requires us to implement measures to safeguard the sustainability of our company.”
Haenisch further stated that the company would share impacted positions in the coming weeks to assist laid-off staff with finding new employment.
Founded in 2011, Berlin-based marketing agency Freaks 4U Gaming provides a range of services, including strategic consultancy, event organisation and social media management, to gaming and esports brands worldwide.
The company has previously worked with esports circuit VALORANT Game Changers EMEA, esports data analytics provider Shikenso Analytics and peripheral brand HyperX.
Last year, Freaks 4U Gaming already experienced layoffs and placed some employees on short-time work. Despite an €8m (~£6.85m) investment from Indian esports company NODWIN Gaming in January, the company was impacted by difficult market conditions and cancelled projects, resulting in additional layoffs.
The so-called esports winter has been heavily affecting the esports sector throughout 2024. The industry’s struggle with the market correction following the boom during the pandemic has led to waves of layoffs.
Discord, ESL FACEIT Group and Riot Games are among the major esports companies that have reduced workforces to ensure the sustainability of each company’s core businesses. Others, such as esports organisations Vexed Gaming and Sprout Esports, have shut down entirely.
