Epic Games, the company behind Fortnite, has laid off about 830 employees, which amounts to 16% of its workforce.
This decision was made because Epic Games spent a lot more money than they were making. Their optimistic projections about making money from metaverse-related ventures led to this critical situation.
“We concluded that layoffs are the only way and that doing them now and on this scale will stabilize our finances,” wrote CEO Tim Sweeney in a Sept. 29 memo sent to Epic Games staff.
In addition to the layoffs mentioned earlier, Epic Games is saying goodbye to another 250 employees.
Epic Games is also selling the music website Bandcamp, which it acquired in March 2022, and separating its marketing company, SuperAwesome. SuperAwesome specializes in child safety technology and became part of Epic in 2020.
Employees who won’t be working with Epic Games will get six months of salary, and employees who reside in the United States, Canada, and Brazil can get six months of paid healthcare as well.
Tim Sweeney acknowledged that the company’s recent expansion was due to the Fortnite Creator program, which lets players create and sell their in-game content, with Epic Games taking a 40% share of the profits. However, this change has led to reduced profits.
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