Epic Games Fires Nearly 1,000 Employees

Epic Games is currently facing a series of setbacks.

A decline in Fortnite’s popularity, an unfavorable outcome in their legal battle with Apple, and the Epic Games Store’s inability to secure its position as gamers’ top choice despite years of offering free games have all contributed to a challenging financial situation for the company.

In response, Epic Games has opted for a direct approach: downsizing its workforce by letting go of approximately 870 employees, which accounts for 16% of its total workforce.

Furthermore, Epic Games has disclosed plans to divest itself of Bandcamp, an online music distribution platform it acquired last year. Additionally, the company intends to sell a significant portion of SuperAwesome, a firm specializing in child-safe technology.

In a message addressed to Epic Games employees, CEO Tim Sweeney acknowledged that the company had exceeded its earnings and found itself compelled to take this measure in order to sustain its growth. Sweeney emphasized that despite efforts to trim operational costs, staff reductions had become an unavoidable step to ensure the company’s financial viability.

The decision to sell Bandcamp and a substantial portion of SuperAwesome is part of Epic Games’ strategy to enhance its financial standing. Bandcamp is slated to join the music market company Songtradr, while SuperAwesome’s advertising division will continue its operations as an independent entity.