Team Liquid has initiated a new round of layoffs across various departments, marking the third major restructuring within the past year. The decision comes amid revised financial forecasts and lower expected revenues, compounded by economic challenges and shifts in gaming industry investments.

Previous layoffs occurred in September 2025 and March 2026. Despite earning $5 million in 2025 from winning the Esports World Cup Club Championship and $2 million in 2026 for a fifth-place finish, the termination of a long-term partnership with Honda in May 2025 worsened financial instability.

Employees were notified of the layoffs on August 26, 2026, though the exact number affected remains unknown, with some contracts ending in late September. Affected employees will receive a support package, but contractors may only receive pay for hours worked. The layoffs occur despite strong financial performance, with over $60 million in revenue last year and profitability for the past three years. The club has not commented on the new round of layoffs.