Epic Games, the creator behind the global gaming sensation Fortnite, is making headlines with its recent announcement of a significant workforce reduction.
Epic Games CEO Tim Sweeney candidly addressed the situation in a memo to employees. He acknowledged the company's past efforts to curb expenses, such as minimizing hiring and cutting back on marketing and events.
However, these measures proved insufficient in achieving financial stability. Sweeney expressed optimism about avoiding layoffs but ultimately deemed them necessary to stabilize the company's finances.
See the Epic Games lay off announcement here.
Epic Games layoffs 16% of its workforce
Epic Games is bidding farewell to 16% of its workforce, translating to around 870 dedicated professionals who have contributed to the company's success. These numbers underscore the magnitude of this workforce reduction, highlighting the far-reaching implications it holds.
Notably, Epic Games' announcement comes on the heels of its Supreme Court cert petition related to Apple's App Store policies. This legal battle, coupled with a price increase for Fortnite V-Bucks in several countries, underscores the company's determination to address industry challenges and push for a thriving metaverse.
Along with the Epic Games layoff, the company also decided to increase the prices of V-bucks used in in-game purchases of the company's popular game Fortnite in the Czech Republic, Denmark, eurozone countries Hungary, Japan, Norway, Poland, Romania, Sweden, Turkey, and the United States.
You may see the new V-Bucks prices here.
Why is Epic Games laying off?
To stabilize its finances, Epic Games made the difficult decision to conduct these layoffs. Additionally, the company is divesting assets like Bandcamp, an online audio distribution platform it acquired last year, and spinning off most of SuperAwesome, a kid-safe technology developer acquired in 2020.
These strategic moves are part of Epic Games' efforts to reallocate resources and focus on its core projects while addressing financial challenges. And their previous lawsuits such as Apple vs. Epic Games.
It's worth noting that about two-thirds of the layoffs were in teams outside of core development, and the company remains committed to delivering its most successful initiatives, including upcoming Fortnite Seasons and projects like Fortnite Chapter 5.
Featured image credit: Epic Games.
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