Snoop Dogg has resigned from the board of directors of online gaming and youth culture brand FaZe Clan, according to a company filing published Tuesday (April 4), as the publicly traded company struggles with penny-stock status and internal cost cuts.
A spokesperson for FaZe Clan said the company’s relationship with Snoop, whose real name is Calvin Broadus Jr., “remains positive as we will continue a multiyear collaboration agreement between Snoop and FaZe.”
FaZe Clan, which last month reported revenue of $70 million for 2022, makes money from brand sponsorships with companies like Porsche, esports leagues and its talent network — including individuals like Snoop Dogg — which FaZe says helps the brand reach more than half a billion people worldwide.
However, the company has struggled since going public on the Nasdaq last summer. FaZe’s stock has traded for less than $1 since early February and was trading at 49 cents on Thursday (April 6). That’s down from its debut share price of $13.07.
In a letter to shareholders last week, the company said it has cut its workforce by 20% since its 2022 IPO and is streamlining its management structure while “curtailing high-cost investments in original content” as it works to lower costs.
“We faced a tremendously challenging market and economic environment (last summer) that slowed our early progress,” FaZe Clan CEO Lee Trink said in a letter to shareholders discussing the company’s 2022 earnings. “While we don’t make excuses at FaZe, we have reevaluated our near-term priorities and goals to align with our capital position, including making difficult decisions to right-size our business.”
The company reported a gross profit of $15.2 million in 2022, up from $8.9 million in 2021, with growth driven by a nearly 70% increase in brand sponsorships revenue — an area FaZe said it will double down on this year.
