author: Zuzanna Domeradzka
Epic Games in Crisis; Major Layoffs at the Company
There have been major layoffs at Epic Games. More than 800 people have lost their jobs, due to Tim Sweeney's company's uninspiring financial situation.
Tthe official website of the creators of Fortnite has published a letter written by Tim Sweeney, which was previously sent to Epic Games employees. We learn from it that 16% of all employees at the company, or as many as 830 people, have lost their jobs.
Tougher times for Epic Games
Tim Sweeney, the head of Epic Games, revealed in the letter what is the reason for such massive layoffs:
"For a while now, we've been spending way more money than we earn, investing in the next evolution of Epic and growing Fortnite as a metaverse-inspired ecosystem for creators. I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic."
According to Sweeney, Epic Games employees were supposed to have been working up a sweat recently to come up with ways to cut expenses, but in the end layoffs were the only remaining option. The head of the company argues that more than two-thirds of the people who lost their jobs were not involved in any major projects, so the development of Epic's "ambitious" plans is to be unthreatened.
Related to these mass layoffs is the divestment of SuperAwesome and music store Bandcamp (both companies were purchased by EG in w 2020 and 2022 respectively). SuperAwesome is to be an independent company from now on, while the other entity will go under the wings of Songtradr. As many as 250 people will leave Epic Games by this decision.
The future of the company
Sweeney assured that all those affected by the wave of layoffs will receive due support. Among other things, they will continue to receive a salary for six more months and will have access to health care paid for by Epic Games.
At the same time, the head of EG announced that the company has no plans for further layoffs related to stabilizing its financial situation. In addition, the giant will continue to invest in the development of Fortnite, Rocket League and Fall Guys, as well as in Unreal Engine. What we don't know is whether Epic's policy on free game giveaways and providing temporary exclusivity for some titles in Epic Games Store, both of which have cost the company a lot of money, will change in the long run.
Not just Epic
There have been a lot of layoffs in the game industry lately, such as at BioWare, Niantic or CD Projekt RED. Another action that made waves was the restructuring program at the Embracer Group. As a result, people from the studios Beamdog, Crystal Dynamics or Gearbox Publishing lost their jobs, and Volition was disbanded entirely.
