The game developer Epic Games, recognized for the widely popular video game Fortnite, is undertaking measures to streamline its operations. With the objective of attaining financial stability, the company will be downsizing its workforce by approximately 870 employees, constituting about 16% of its total staff.
In a communication sent to its workforce, Epic Games acknowledged previous actions taken to manage expenses, such as ceasing new recruitments and implementing cost-reduction strategies in sectors like promotion and occasions. Notwithstanding these initiatives, the company found that its expenditures continued to surpass its earnings.
Tim Sweeney, CEO of Epic Games, expressed, “We have determined that staff reductions are imperative and that executing them at this point and on this scale will contribute to stabilizing our finances.” He underscored that this resolution would not undermine the progress of their essential operations.
Epic is eliminating approximately 16% of its workforce, as per a report from Bloomberg. https://t.co/n5W3yv2CT9
— The Verge (@verge) September 28, 2023
Alongside the staff reduction, Epic Games has also chosen to divest itself of Bandcamp, an online music platform it acquired just last year. Bandcamp is renowned for providing independent musicians with a channel to earn a greater yield from their music in contrast to conventional streaming services. As part of this decision, Bandcamp will be integrated into Songtradr, a company that aids musicians in the music marketplace.
Epic Games, which has offices globally, including in the UK, has not disclosed specific details regarding the locations affected by the staff cutbacks. Nevertheless, Mr. Sweeney clarified that a substantial portion of the layoffs would impact teams not directly involved in core development.
Epic Games has gained prominence for both Fortnite and its influential gaming engine, Unreal Engine, which powers numerous successful titles. Particularly, Fortnite boasts a sizable global fan base, with an estimated 400 million registered users.
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