Dignitas confirms fresh round of layoffs
Company does not disclose how many employees have been affected.
New Meta Entertainment, parent company of international esports organization Dignitas, has confirmed that the company laid off some staff on Monday.
“Due to a strategic shift in our business, New Meta Entertainment has made the difficult decision to part ways with employees who were valued contributors," said Michael Prindiville, CEO of New Meta Entertainment, Inc. and Dignitas, in a prepared statement. "We thank the departing employees for their tireless work and dedication. The company is offering assistance to help them transition into the next chapters of their careers."
NME declined to comment on the number of employees that were laid off or if those reductions hit certain departments or were across the board. These layoffs will in no way impact the various pro teams Dignitas currently fields, a spokesperson told me.
A source familiar with the situation speaking on background told me that NME is working closely with affected employees to help them find new employment in a timely fashion and that—contrary to what some in the community have said—these layoffs are not due to anything “metaverse” related because NME’s focus is on broader gaming.
Like the recent layoffs at 100 Thieves, Australian esports organization ORDER, and TSM, this reduction of staff at Dignitas represent a cool-down of business related to the esports sector and subsequent adjustments against industry projections.
On a related note, former Counter-Strike 1.6 and Counter-Strike: Global Offensive pro Rafael Pavanelli announced via social media on Monday that he is no longer working with Dignitas. Pavanelli (who was likely under contract with Dignitas, as he lives in Rio de Janeiro, Brazil) is currently part of the Brazilian Valorant team OSKARAVELHO, and in the past played CS:GO for Brazilian pro teams MiBR, g3x, Team oNe.
Dignitas is the esports division of gaming and entertainment company New Meta Entertainment (formed in 2019), which is backed by a group of investors that includes Harris Blitzer Sports & Entertainment, Fertitta Entertainment, Susquehanna Private Equity Investments, and Delaware North, among others. It operates several verticals in competitive gaming and content and marketing.
In September 2016, Dignitas (then known as “Team Dignitas”) was acquired by Philadelphia 76ers (NBA), New Jersey Devils (NHL) and Newark, New Jersey-based Prudential Center owner Harris Blitzer Sports & Entertainment.
Dignitas currently operates teams in League of Legends (Clutch Gaming), Counter-Strike: Global Offensive, Rocket League, Valorant, Fortnite, and in League of Legends Academy. At the end of 2021 NME launched a women in gaming and esports media platform called Raidiant.gg. It also employs a number of content creators around the world.