Epic Game Layoffs, the Fortnite developer, recently made headlines when it was reported that the company would lay off around 16% of its workforce, affecting approximately 830 employees. This decision came after a period of significant growth for the company, which had expanded from 2,200 employees in 2020 to nearly 9,000 in 2023. The layoffs were announced by Epic CEO Tim Sweeney in an internal email and later posted on the company’s public blog. Sweeney explained that the company had been spending more money than it earned, investing in the next evolution of Epic and growing Fortnite as a multiplayer-inspired ecosystem. He also mentioned that the layoffs were a result of a change in focus for Fortnite, where its growth is now driven “primarily by creator content with significant revenue sharing”.
The layoffs were not the only significant change made by Epic Games. The company also divested from Bandcamp, an independent music storefront company, and spun off a UK-based engagement company, a largely independent entity. Affected employees were offered a severance package that included six months’ base pay, career transition services, and in the US/Canada/Brazil, six months’ unearned profit sharing from their 401k. These layoffs have raised concerns about the future of Epic Games and its flagship engine, Unreal Engine. However, the company has reassured fans and investors that they remain committed to supporting the engines and continuing to innovate in the gaming industry.
In conclusion, the recent layoffs at Epic Games have raised concerns about the company’s future and the potential impact on its products and engines. However, with a severance package in place for affected employees and a commitment to innovation, Epic Games remains a significant player in the gaming industry. As the company moves forward, it will be interesting to see how it adapts to the changing landscape and what new projects and technologies it pursues in the future.
