Fortnite developer Epic Games is projected to lay off around 900 employees, which represents 16 percent of its workforce, as reported by Bloomberg. Tim Sweeney, CEO of Epic, confirmed the layoffs and explained that the company intends to divest from Bandcamp, an independent music storefront it acquired last year, and spin off SuperAwesome, a “kid-tech” company. Sweeney acknowledged that the layoffs were the result of the company’s excessive spending, stating that they were “spending way more money than we earn.” There were speculations about the likelihood of layoffs at Epic, as the company was seeking investment, and reducing expenses through layoffs could potentially facilitate fundraising. With such a significant number of job cuts, the video game job market is expected to become highly competitive in the aftermath.
Epic Games is set to lay off approximately 900 employees, accounting for about 16 percent of the workforce. The company’s CEO, Tim Sweeney, confirmed the layoffs and announced plans to divest from Bandcamp and spin off SuperAwesome. The decisions were driven by the company’s excessive spending, as it has been spending more money than it earns. However, notable from Sweeney’s statement is the absence of an apology to the affected employees, only emphasizing that his optimism regarding avoiding layoffs was unrealistic. Rumors had circulated about the possibility of layoffs at Epic, with speculations that reducing expenses through job cuts could facilitate fundraising efforts. Consequently, the video game job market is expected to become highly competitive following these layoffs.
In what could be a significant blow to the gaming industry, Epic Games is expected to lay off 900 employees, comprising 16 percent of its workforce. The layoffs were confirmed by CEO Tim Sweeney, who shared the company’s plans to divest from Bandcamp and spin off SuperAwesome. Sweeney stated that the layoffs were the result of the company’s financial situation, where spending had significantly exceeded earning. Interestingly, Sweeney did not apologize to the affected employees, expressing only that his optimism for avoiding layoffs was unrealistic. Prior to the confirmation of these job cuts, rumors had already circulated about the possibility of layoffs at Epic. Speculations arose that reducing expenses through layoffs could potentially facilitate the company’s fundraising efforts. With a high number of individuals now seeking new opportunities, the video game job market is expected to become highly competitive.