Tech layoffs are everywhere and the latest company to do it is Epic Games, which is expected to cut roughly 16% of its workforce.
Epic Games, the creator of the immensely popular game "Fortnite, "is making significant changes in its business. The company reportedly lays off approximately 16% of its workforce, impacting about 870 employees.
Epic Games Layoff
In a latest memo written on Thursday, Sept. 28, Epic Games CEO Tim Sweeney acknowledged the challenges the company has faced, particularly in terms of financial sustainability.
Although cost-cutting measures such as net-zero hiring and reducing operating expenses have been tested, the company fell short of its financial goals.
"I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic," Sweeney said about the recent layoff.
Strategic Business Decisions
Another report by Bloomberg says that Epic is also divesting the audio distribution platform Bandcamp. It was only in 2022 when the game studio acquired it.
Bandcamp will join forces with Songtradr, a music marketplace company, while SuperAwesome's advertising business will establish itself as an independent entity under the SuperAwesome brand. The restructuring allows Epic to focus on its core initiatives without compromising its development capabilities.
Despite these changes, Epic Games is committed to delivering its key initiatives, including the highly anticipated next Fortnite Season and Fortnite Chapter 5, which includes Del Mar, Sparks, and Juno. The company's release schedules for these projects remain unaffected, emphasizing their dedication to providing exceptional gaming experiences.
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Adjustment in V-Bucks Pricing
Alongside these announcements, Epic Games revealed an increase in Fortnite V-Bucks pricing. This will affect the United States and several other countries starting Oct. 27, TechCrunch notes.
The company cited economic factors like inflation and currency fluctuations for this adjustment, resulting in a 12% to 15% price increase per bundle.
In the midst of these changes, Epic Games has filed a cert petition with the Supreme Court, reigniting the legal battle surrounding Apple's software business and potential antitrust violations.
The company is determined to challenge distribution monopolies and taxes imposed by industry giants like Apple and Google, aiming to create a thriving metaverse that benefits Epic Games and all developers.
Other Gaming Studios that Participated in Mass Layoff
Aside from Epic Games, Yahoo reported back in August that other video game layoffs were done as part of the restructuring process of the organizations.
- Meta: 10,000 (including some at Ready At Dawn and Downpour Interactive)
- Electronic Arts: 1,000
- Unity: 600
- Kabam Games: 90
- Ubisoft: 60
- Riot Games: 46
- InnoGames: 45
- Firaxis: 30
- CD Projekt Red: 30
- Brace Yourself: around 20
- Playable Worlds: 11
- Phoenix Labs: 9%
- Take-Two: Unknown number
Outside the world of gaming, Sonos, ZipRecruiter, and Disney conducted layoffs over the past months. It is expected that more layoffs in the tech industry will happen before the end of 2023.
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