Snoop Dogg Steps Down From FaZe Clan Board Amid Company Setbacks

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.