This isn't a necessity for Riot; the American Gaming Corporations are addicted to layoffs because it's a naked display of their power. If they were made to take responsibility for their bad financial decisions, CEOs and other corporate leeches would have their unnecessarily high pay cut.
That's why I honestly respect Nintendo execs because they will take pay cuts over laying off staff when the going is tough! They might occasionally do shitty things or make out of touch decisions but at least they care about the health of their companies. Game companies can't make good games without talent.
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