Often burning cash, Epic Games lays off nearly 900 employees

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Epic gamesthe company behind the success Unreal engine and Battle Royale games Fortnite, announced some very sad news. They have just terminated their employment (PHK).

This news was revealed directly by Tim Sweeney, CEO of Epic Games, in an email sent to workers. In the memo, Sweeney said the company had laid off about 16% of employees, or at least 830 people, cited. detikINET from the official website, Friday (9/29/2023).

“For some time now, we’ve been spending more money than we make, investing in Epic’s next evolution, and growing Fortnite as a metaverse-inspired ecosystem for content creators. I’ve long been optimistic about our ability to get through this transition without layoffs, but in hindsight I view that as unrealistic,” Sweeney said.

Sweeney admitted that it was in fact Fortnite now begins to develop. Unfortunately, this growth is driven by content creators with a strong profit sharing system.

According to him, it is a business with lower margins than today. Fortnite Just Launched. He explained that the expansion of the content creator ecosystem was indeed an extraordinary achievement, but it had changed the economic structure of the business.

Every effort has been made Epic Games, such as reducing operational costs of marketing and events. But unfortunately, this still did not save the company’s finances.

“We concluded that layoffs were the only solution and that doing layoffs now and on a scale of this magnitude would stabilize our finances,” Sweeney said.

Sweeney announced that employees affected by the layoffs would be offered severance packages. This includes six months of base salary, as well as six months of healthcare services in the United States/Canada/Brazil.

“For those still at Epic, you’ll hear more from senior leadership about the future of your team. Epic’s future prospects are very strong. We have great gaming experience across multiple platforms,” concluded Sweeney.

Watch the video “RI unemployment rate falls but wave of layoffs expected to continue

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Justin Ortega

"Professional communicator. General music practitioner. Passionate organizer. Evil twitter fan."

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