Brazilian esports organisation Vivo Keyd Stars (VKS) has executed a wave of internal layoffs, terminating at least 10 staff members across its non-competitive back-office departments.

An investigation by The Esports Radar following social media statements from affected personnel reveals that the organisation’s commercial and marketing teams were practically wiped out in their entirety.

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According to findings by The Esports Radar, the organisational restructuring was driven by budget cuts in response to an alleged challenging macroeconomic environment across the esports industry. Additional details obtained by The Esports Radar also indicate that Vivo Keyd Stars management intends to revamp its corporate strategy and structure. The esports department and active rosters were largely spared from the staff reductions.

On the competitive side, VKS remains a major player in the South American region, featuring prominently in top-tier titles such as Counter-Strike 2 (CS2) and League of Legends, where it competes in the Brazilian League of Legends Championship (CBLOL) ecosystem with a championship title and a Worlds 2025 appearance.

The organisation’s current roster of sponsors and commercial partners includes naming rights sponsor telecommunications giant Vivo, master sponsor and betting platform EstrelaBet, gaming peripheral manufacturer HAVIT, ergonomic furniture supplier Flexform, educational esports coaching platform Savicore, and additional digital brand supporters.

However, according to a report by CBLOL Insider, the downsizing stems from the potential non-renewal of the decade-long naming sponsor Vivo—a critical financial pillar for the organisation. The fiscal squeeze is already impacting daily esports operations, with VKS reportedly vacating its gaming office to cut costs. According to CBLOL Insider, both the main CBLOL and Academy rosters cleared out of the facility on Thursday (13), with the organisation currently seeking a new location to maintain team operations.

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Led by CEO Hugo “Vex” Tristão, Vivo Keyd Stars was formed in November 2022 through a high-profile merger between historic legacy brand Vivo Keyd and Stars Horizon, creating an entity valued at an estimated R$100m (~$19m USD at the time). The Vivo naming rights deal, first established in 2014, was then carried over to the newly formed entity.

The Esports Radar reached out to Vivo Keyd Stars leadership for official comment on the operational changes, but received no response by the time of publication. CBLOL Insider also did not hear back from VKS.

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