The layoffs affected 2% of the company’s workforce, according to a response directly from Razer to Droid Life. While it is not completely clear which projects were shut down, some engineers that worked on the Razer Phone and Razer Phone 2 were let go, according to Droid Life, which suggests that some mobile and mobile gaming related projects were cut— with a news tip to Droid Life further reporting that the Razer Phone 3 has been cancelled. Razer confirmed that some staff was let go from mobile, but noted that some employees from mobile were reassigned to other projects. It has not confirmed or denied the cancellation of the Razer Phone 3.
The warning signs for layoffs were, perhaps, there beneath the surface of earlier news which mentioned plans for realignment. Razer announced just earlier this week that it is closing its Razer Game Store on Feb. 28 as a part of its realignment efforts.
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“Razer has made changes to realign our organization and strengthen our path to growth,” Razer stated. “We will centralize our resources to focus on key projects and improve our profitability. As part of the realignment, we shut down several projects and unfortunately had to part ways with about 30 employees (about 2% of our total workforce). Other employees of the affected projects will be moved to different parts of Razer to work on other key focus projects and initiatives which will continue to scale and hire.”
Razer is not completely turned off from mobile gaming, according to another statement sent to Droid Life.
“We see great opportunities in the mobile gaming space that we created with the Razer Phone and will continue to invest in this category through a combination of hardware and software initiatives,” Razer told Droid Life. “We are working on new exciting mobile projects and will share the news when we are ready. The Razer Phone 2 will continue to be on sale and we are committed to supporting it with the latest updates and features.”
The Razer Phone 2 offered a satisfying mobile gaming experience overall, but offered “very little when it comes to pushing the notion of a smartphone designed just for games forward,” according to Variety’s review of the device.
With the tough competition for phone sales, perhaps Razer decided that it would be better off refocusing its efforts on other divisions of its business, such as its non-mobile gaming offerings.