Hi-Rez Studios Conducts Second Round of Layoffs in Four Months Amid SMITE 2 Push

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Paladins, has initiated its second wave of layoffs in four months, impacting roles across game development, QA, and esports. The cuts follow October 2023’s “reorganization” to prioritize SMITE 2—currently in beta—over legacy titles.

Key Details

Scope: Over 20 employees confirmed laid off so far, per the SMITE subreddit, including programmers and QA staff. The studio’s esports division is also affected.
Context: Hi-Rez abruptly removed SMITE 1 from Nintendo Switch on January 30, citing “quality” concerns—a move now linked to cost-cutting.
Sudden Impact: Some employees were reportedly laid off mid-project, including staff who appeared on a studio stream just days prior.

In a Discord statement, Hi-Rez esports manager Hinduman confirmed the restructuring, emphasizing a renewed focus on SMITE 2’s competitive future: “Cash prizing will be provided by Hi-Rez [...] organized competitive play will remain a high priority.” However, he noted esports will “evolve” from SMITE 1’s model, with details on tournaments and community coming “in the coming weeks.”

Broader Implications
Hi-Rez, once known for Rogue Company. The layoffs signal aggressive cost-cutting to fund SMITE 2, a Unreal Engine 5 reboot aiming to modernize the MOBA’s decade-old framework.

The removal of SMITE 1 from Switch—a platform with a niche but dedicated player base—and repeated layoffs risk alienating veterans. The studio has not clarified how SMITE 1 will be ed long-term, though its player count has dwindled since SMITE 2’s announcement.

For now, Hi-Rez’s future hinges on SMITE 2’s success. The beta has drawn mixed , with critics noting performance issues and minimal gameplay innovation. With reduced staff and shuttered projects, the studio faces mounting pressure to deliver.

Further reading: Reddit discussion