Team Liquid begins staff cuts amid worsening financial outlook

Esports organization Team Liquid has begun its third round of staff cuts in the past year amid a worsening financial outlook. According to The Esports Radar, the changes have affected several departments worldwide. Employees were notified of the layoffs on August 26, although the exact number of people affected remains unknown.

Previous cuts took place in September 2025, when the club laid off approximately 6% of its staff of more than 300 employees, and again in March 2026.

Sources link the latest restructuring to lower revenue expectations amid macroeconomic difficulties and changes in the gaming and advertising markets.

At the same time, in May 2026, Liquid co-owner and CEO Steve Arhancet said that the organization had generated more than $60,000,000 in revenue over the previous year and had remained profitable for three consecutive years. Therefore, the current situation is not about officially reported losses, but rather a worsening financial outlook.

The club's results at major tournaments

Team Liquid's results at the Esports World Cup may also have affected the organization's financial outlook. After winning the Club Championship in 2025 and receiving $4,000,000 in prize money, the organization finished only 5th at the Esports World Cup 2026 and received $2,000,000.

Meanwhile, one of the club's most successful representatives at EWC 2026 was Magnus Carlsen, who won the chess tournament and earned $250,000 in prize money. The club's Dota 2 roster finished the championship in 9th-12th place and received $40,000.

The Dota 2 roster achieved significantly better results at other tournaments during the season. The team earned $400,000 for winning BLAST Slam VI, $175,000 for finishing second at PGL Wallachia Season 7, and another $100,000 for winning 1win Essence II. At the recently concluded The International 2026, the team finished 5th-6th and received approximately $167,000 in prize money. In total, the roster has earned more than $1,000,000 from tournaments in 2026.

However, Liquid's competitive results cannot be directly linked to the staff cuts. Sources point to a broader revision of the organization's financial forecasts and expected revenue rather than the results of any individual roster.

Loss of the Honda partnership

Another factor was the loss of a long-standing partnership with Honda in May 2025. The partnership lasted for around six years and ended following a controversy involving Team Liquid Rainbow Six Siege player Lucas DiasLucasBr Dias.

After a loss to Japanese team CAG Osaka, the player posted a GIF related to the atomic bombing of Hiroshima. The organization fined him an amount equivalent to four months' salary, while Honda ended its partnership with the club shortly afterward.

According to one source, the loss of a major partner became a turning point, after which the club entered a period of financial and organizational uncertainty.

The management has yet to comment on the latest round of staff cuts, while the exact number of employees affected remains unknown.

Earlier, CyberScore shared details from a Maincast podcast, where analysts discussed the reasons behind the crisis of the tier-2 scene, as well as issues affecting the first division.