Despite Fortnite’s continued popularity, Epic Games has laid off almost 900 employees.
In an official letter to employees and the public, CEO Tim Sweeney stated that 16% of employees were being laid off since the company has been “spending way more money than we earn” in an attempt to invest in the “next evolution” of Epic Games, largely Fortnite and its metaverse.
“I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic,” Sweeney said.
Epic Games shares goals and vision after layoffs
The loss of 830 employees was definitely a devastating one for the gaming industry, although it’s expected after all of the similar situations at other game developers and esports organizations this past year.
The former Epic employees will be receiving a severance package that includes six months base pay and healthcare. Meanwhile, the company will be focusing on the Fortnite creator ecosystem and presence in the metaverse.
“We’re cutting costs without breaking development or our core lines of businesses so we can continue to focus on our ambitious plans. About two-thirds of the layoffs were in teams outside of core development. Some of our products and initiatives will land on schedule, and some may not ship when planned because they are under-resourced for the time being. We’re ok with the schedule tradeoff if it means holding on to our ability to achieve our goals, get to the other side of profitability, and become a leading metaverse company.”
According to Sweeney, no cuts have been made to the core businesses within Epic Games. There will be a massive meeting in October to go over the layoffs and the future of the company.
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