Why were FaZe Clan members laid off? Reason behind sudden layoffs explored

FaZe Clan has recently undergone restructuring, with major layoffs taking place recently. These affected even long-time members, such as Blaze. The group's founding members have once again taken the helm since 2023, with Richard "Banks" assuming the role of CEO, Tommy "Temperrr" acting as the organization's president, and Yousef "Apex" supporting the two as a fellow co-founder.

The names of the various members who were let go from the organization, along with those who remain were listed as part of a video uploaded by FaZe Clan's official X account on April 27. This article explores the reason behind the layoffs.

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Reason behind recent FaZe Clan layoffs explained

Richard "Banks" took it upon himself to "reboot" FaZe Clan after it was acquired by GameSquare in October 2023. This acquisition acted as a catalyst for the change in leadership and subsequent layoffs. Richard has recently updated the remaining list of creators affiliated with the gaming organization on his X account.

FaZe Banks explain his lack of control over the organization for "7 years" (Image via Banks/X)

Banks offered explanations regarding the layoffs in several replies on the social media platform and has been able to acquire command over the organization's decisions after years without "any sort of actual real control." Furthermore, he has stated that he had his shares "stolen from him," saying:

"My shares were legitimately stolen from me. I was written out of the company. Stripped, STOLEN. My shares weren’t reissued reinstated for over 7 years and only ultimately were because they had to be for them to take it public. I’ve never had a say, a vote, any sort of actual real control. I have never sold a share or profited from this brand outside of a working class salary. I’d be able to suck it up if I made a poor decision and sold. That simply isn’t the case. Sh** was literally stolen from me."

On the other side, while responding to former member Kalei about her concerns about her layoff, Banks stated that the reason she was let go was that she had been recruited during "darkest era" of FaZe, which did not allow for a "genuine relationship" to be formed with her. As per him, she was laid off because the company had to 'wipe its slate clean'.

FaZe explains the reason behind Kalei's removal (Image via Banks/X)

Furthermore, he mentioned that the changes in membership happened due to a desire to try and get the clan back to being "fun," which, as per Banks, it has not been in a "very long time." He stated:

"The only reason you were let go is because a genuine relationship couldn’t really ever have been formed. Because of the nature in which you were recruited. You were recruited unfortunately during the darkest era of FaZe and we just have to wipe our slate clean at all costs. It’s paramount to getting this brand/ the vibes at this team/ company back to where I know they can be... Like this isn’t fun. It hasn’t been for a very long time. We’re just trying to get it back to that."

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Banks had also stated at the start of April 2024 that the organization as a whole had to be cut down from 140 employees to only 30 and that it had also planned to reduce the number to 10. Additionally, foreshadowing the latest layoffs, Banks said that these layoffs would include content creators as well.