Fortnite maker cuts 16% of its workforce

Epic Games, the creator of Fortnite, one of the world’s top video games, is slashing 870 jobs, which is around 16% of its workforce.

They’re also parting ways with Bandcamp, the online music platform they acquired just last year.

In an internal memo, Epic stated it had made efforts to reduce expenses but was still “spending way more money than we earn.”

“We concluded that layoffs are the only way, and doing them now and at this scale will stabilize our finances,” CEO Tim Sweeney penned.

“Epic teams globally have been making ongoing efforts to cut costs, including transitioning to net zero hiring and trimming operational expenses on areas like marketing and events.

“But we still fell significantly short of financial sustainability.”

Epic Games downsizes and sells Bandcamp

He mentioned that Bandcamp would be joining Songtradr, a music marketplace supporting artists.

Bandcamp had established its reputation as a platform where independent artists could earn a better return on their music compared to streaming platforms. Its acquisition by Epic in 2022 raised some eyebrows, with many wondering how the two businesses would synergize.

This recent move seems to validate those concerns.

Epic, with offices worldwide including in the UK, hasn’t yet disclosed where the job cuts will be implemented.

However, Mr. Sweeney assured that the roles were being eliminated “without disrupting development or our core business lines.”

He further highlighted that about two-thirds of the layoffs were in teams “outside of core development.”

Epic is also renowned for its game engine, Unreal Engine, which powers several hit titles including Fortnite and Gears of War.

Fortnite remains a global sensation, boasting an estimated 400 million registered users.

With information from BBC