Epic Games lays off 830 staff, citing ‘unrealistic’ metaverse ambitions
“Spending way more than we earn” — CEO Tim Sweeney blamed job cuts on major structural changes to the company’s economics.
Epic Games, the company behind Fortnite, has slashed 16% of its workforce — approximately 830 staff — after unrealistic expectations of metaverse-inspired revenue caused it to spend “way more” money than it had been earning.
"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.
“I had long been optimistic that we could power through this transition without layoffs, but in retrospect, I see that this was unrealistic,” Sweeney added.
Epic Games have laid off 870 employees today across multiple departments, a whopping 16% of their workforce. Those laid off will receive 6 months severance
— Jake Lucky (@JakeSucky) September 28, 2023
"For awhile now, we've been spending way more money than we earn, investing in the next evolution of Epic and Fortnite" pic.twitter.com/4W6Pn31CU3
While Sweeney credited the company’s recent growth to the Fortnite Creator program — which allows players to build and sell their own content in-game for a 40% cut — the shift has resulted in lower margins.
"Success with the creator ecosystem is a great achievement, but it means a major structural change to our economics."
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