Asia Tech Wire (Jan 23) -- California-based video game developer Riot Games Inc. has announced that it will be laying off around 530 employees globally, or 11% of its workforce.

The company said the layoffs will occur over the next several weeks, and affected employees will receive at least six months' salary as severance, as well as cash bonuses and additional benefits.

Riot Games CEO Dylan Jadeja said in an internal message that the company made the decision not "to appease shareholders or to hit some quarterly earnings number," but because it lacked a "sharp enough focus" and "have too many things underway."

According to Jadeja, some of Riot Games' significant investments aren't paying off as expected, while the its costs "have grown to the point where they're unsustainable," leaving the core of the company's business at risk.

Riot Game has said it will be focusing more on its business while investing less in unimportant matters, including downsizing the team for card game Legends of Runeterra and sunsetting Riot Forge after the upcoming release of Bandle Tale.

Founded in 2006, Riot Games is famous for its popular video game League of Legends.

And in 2015, Chinese gaming and social media giant Tencent Holdings Ltd acquired 100% of the remaining shares of the game developer, making it a wholly owned subsidiary of Tencent.

In addition to Riot Games, recently there have been layoffs at U.S. video game engine provider Unity Software and Twitch, Amazon's streaming platform.