Epic Video games, the corporate behind Fortnite, has slashed 16% of its workforce — roughly 830 employees — after unrealistic expectations of metaverse-inspired income triggered it to spend “far more” cash than it had been incomes.
“We concluded that layoffs are the one method and that doing them now and on this scale will stabilize our funds,” wrote CEO Tim Sweeney in a Sept. 29 memo despatched to Epic Video games employees.
“I had lengthy been optimistic that we may energy via this transition with out layoffs, however looking back, I see that this was unrealistic,” Sweeney added.
Epic Video games have laid off 870 staff in the present day throughout a number of departments, a whopping 16% of their workforce. These laid off will obtain 6 months severance
“For awhile now, we have been spending far more cash than we earn, investing within the subsequent evolution of Epic and Fortnite” pic.twitter.com/4W6Pn31CU3
— Jake Fortunate (@JakeSucky) September 28, 2023
Whereas Sweeney credited the corporate’s latest progress to the Fortnite Creator program, which permits gamers to construct and promote their very own content material in-game for a 40% lower, the shift has resulted in decrease margins.
“Success with the creator ecosystem is a superb achievement, however it means a serious structural change to our economics.”
Along with the aforementioned layoffs, Sweeney stated one other 250 staff would even be leaving Epic Video games, as the corporate introduced it will be promoting the not too long ago acquired music web site Bandcamp and spinning off its advertising firm SuperAwesome, a child-safety tech agency that joined Epic in 2020.
Notably, soon-to-be-former staff of Epic Video games will likely be provided six months of pay, and people residing in the US, Canada and Brazil can count on six months of paid healthcare as nicely.
Apart from Fortnite, which boasts some 400 million registered customers, Epic Video games additionally runs the Unreal Engine. The online game growth suite powers titles corresponding to God of Conflict and PlayerUnknown’s Battlegrounds.