Epic Games, the creator of the popular video game Fortnite, announced on Thursday a series of layoffs that will affect around 830 employees, representing approximately 16% of its workforce. The announcement was made through an email sent by the company’s CEO, Tim Sweeney, to employees and later posted on the company’s website.
In the message, Sweeney explained that Epic Games had been spending more money than it was generating, despite its efforts to drive the growth of Fortnite as a metaverse-inspired ecosystem for creators and to invest in future releases from the company. Despite his previous optimism about avoiding layoffs, Sweeney acknowledged that this measure was necessary.
Fortnite’s growth has regained momentum, but much of its revenue comes from user-created content, which has led to the need to reevaluate the company’s structure.
In addition to the layoffs, Epic Games remains committed to its ongoing legal battle against tech giants Apple and Google. The company has been fighting in court over Apple and Google’s app store policies and fees that affect the distribution of Fortnite on mobile devices.
In an effort to adjust its business approach, Epic Games has also decided to sell Bandcamp, the online music platform it acquired last year, and separate the advertising business from one of its divisions.
These changes are part of Epic Games’ efforts to maintain its position in the video game industry while continuing to face significant economic and legal challenges.