Streamlining Operations for Financial Stability
Epic Games, the creator of the immensely popular video game Fortnite, has made a strategic decision to streamline its operations. In an effort to achieve financial stability, the company is reducing its workforce by approximately 870 employees, constituting around 16% of its total workforce.
In a memo addressed to its staff, Epic Games acknowledged its previous efforts to control costs, including a pause on new hiring and cost-cutting measures in areas such as marketing and events. However, despite these measures, the company found itself still spending more than it earned.
Epic Games CEO Tim Sweeney stated, “We concluded that layoffs are the only way, and that doing them now and on this scale will stabilize our finances.” He emphasized that this action is being taken without compromising the development of their core businesses.
According to a Bloomberg report, Epic is cutting roughly 16 percent of its workforce. https://t.co/n5W3yv2CT9
— The Verge (@verge) September 28, 2023
Furthermore, Epic Games has decided to divest itself of Bandcamp, the online music platform it acquired just last year. Bandcamp is known for providing independent artists with a platform to earn a more substantial return on their music compared to traditional streaming services. As part of this decision, Bandcamp will be joining Songtradr, a music marketplace company that supports artists.
Epic Games, with offices worldwide, including in the UK, has not disclosed specific details regarding where the job cuts will occur. However, Mr. Sweeney clarified that a significant portion of the layoffs would affect teams outside of core development.
Epic Games is renowned not only for Fortnite but also for its influential gaming engine, Unreal Engine, which powers several successful titles, including Fortnite and Gears of War. Fortnite, in particular, boasts an impressive global following, with an estimated 400 million registered users.
This decision by Epic Games reflects a strategic move to ensure long-term financial sustainability while preserving the core elements of its business.