Fortnite Game Developer Epic Games Announces Layoffs and Strategic Transformations

2023-09-28 22:41:09
“Fortnite” game developer Epic Games announced on Thursday (28th) that it will lay off 16% of its employees, sell its music platform Bandcamp, and spin off most of its SuperAwesome services. According to a memo on Epic’s official website, CEO Tim Sweeney said that the company will lay off about 830 people, 2/3 of which are “other than core development” personnel, so this move can reduce costs without interrupting major projects. He said that Epic has been working hard to cut spending on marketing and events, but has concluded that “layoffs are the only way to achieve financial stability.” Sweeney wrote in the memo that the company will invest in the next step of developing Fortnite. “To build a metaverse ecosystem for creators, it has been unable to make ends meet for some time. My long-term optimism that “the company can complete this transformation without laying off employees” is unrealistic. In addition, he also announced that Bandcamp, the music platform acquired by the company last year, will be sold to music licensing platform Songtradr. Songtradr said in another article, “The Bandcamp market and music community will continue to be operated, and revenue sharing will be given priority to artists.” SuperAwesome is a children’s Internet safety company acquired by Epic in 2020, and its business (providing children with Friendly Services) will be spun off into an independent company under the name SuperAwesome. The layoffs at Epic Games are the latest in a wave of layoffs across the tech industry, which has faced slowing growth and rising interest rates since early last year. Epic shares are privately held and China’s Tencent is its majority shareholder with less than a majority stake. The company is valued at more than $30 billion in 2022.
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