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Very reputable rumors have been swirling surrounding the potential shut down of CLG, with mass layoffs and dropped teams looming. Now, CLG’s owners, MSG Sports, have confirmed that there are big changes ahead for the iconic esports organization.

It’s no secret that 2023 has been a tough year for esports. Team Liquid recently went through a big layoff, TSM has also laid off staff as the org considers halting all esports operations, and The Guard laid off its entire staff during an all-hands meeting in February of 2023.

It looks like CLG is the next organization to feel the economy’s wrath, with the organization rumored to be selling off its esports teams, including its LCS roster.

As the rumors started flying on social media, CLG staff spoke out.

It was clear that staff knew something was afoot but were not able to tell the public exactly what’s going on behind the scenes. But whatever it is, it doesn’t seem positive. Many pro players and content creators from CLG have also made cryptic and heartbreaking statements on Twitter, saying that the situation “sucks” and that they feel “broken.”

But what’s really going on? Is CLG truly planning to shut down?

CLG Owner Discusses Big Changes

It was initially reported on April 3 that staff were told that they would no longer have jobs by the end of the week. Reports also added that the League of Legends team and staff would be sold to NRG Esports.

Journalist Alexander Lee of Digiday recently got a statement from MSG Sports and it looks like the reports may be true.

According to Lee, a spokesperson from the parent company stated: “While changes like this are always difficult, we are streamlining CLG’s operations to better position the company for long-term success, and are also currently exploring strategic alternatives for the business.”

MSG purchased the majority of CLG in 2017 to “enhance” their “portfolio of live experiences.” CLG itself has been around since 2010, initially starting as a League of Legends team. The organization has since branched out into VALORANT, Counter-Strike, and other competitive titles.

But is all of this over?

The statement from MSG is unfortunately a bit cryptic. It sounds like there will most definitely be layoffs and other changes that will make CLG smaller. But it’s not yet clear exactly how many staff, pro players, and content creators will be impacted. All we know for now is that even more esports industry employees will be out of a job come April 7.