Epic Games, the creator of the popular video game Fortnite, is taking steps to streamline its operations. As part of its effort to achieve financial stability, the company will be reducing its workforce by about 870 employees, which accounts for roughly 16% of its total workforce.
In a memo sent to its staff, Epic Games acknowledged previous measures taken to control costs, such as halting new hires and implementing cost-cutting strategies in areas like marketing and events. However, despite these efforts, the company found that its expenses still exceeded its earnings.
Epic Games CEO Tim Sweeney stated, “We have reached the conclusion that layoffs are necessary and that conducting them now and at this scale will help stabilize our finances.” He emphasized that this decision would not compromise the development of their core businesses.
According to a Bloomberg report, Epic is cutting roughly 16 percent of its workforce. https://t.co/n5W3yv2CT9
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In addition to the workforce reduction, Epic Games has also decided to divest itself of Bandcamp, an online music platform it acquired just last year. Bandcamp is known for providing independent artists with a platform to earn a higher return on their music compared to traditional streaming services. As part of this decision, Bandcamp will be joining Songtradr, a music marketplace company that supports artists.
Epic Games, which has offices worldwide including in the UK, has not provided specific details regarding where the job cuts will take place. However, Mr. Sweeney clarified that a significant portion of the layoffs would impact teams outside of core development.
Epic Games is well-known for both Fortnite and its influential gaming engine, Unreal Engine, which powers several successful titles. Fortnite, in particular, has a large global following with an estimated 400 million registered users.
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