Fortnite developer Epic Games has confirmed reports that around 16% of its employees have been laid off, affecting nearly 830 staff members.
Epic CEO Tim Sweeney said the company has been working to reduce costs around the world, including its transition to “net zero hiring and reducing operating spend on things like marketing and events.” However, Epic has fallen far short of financial sustainability, forcing the company to resort to layoffs in an attempt to “stabilize” finances.
‘Unrealistic’ metaverse goals
on a cane email Shared on the company’s website, Sweeney admitted to spending “far more” money than the company made despite initially being optimistic about its ability to push through the transition without cutting the workforce.
The executive added that the decision to grow Fortnite as a metaverse-inspired ecosystem for creators was “unrealistic” in retrospect.
“While Fortnite is starting to grow again, the growth is primarily driven by creator content with a significant revenue share, and this is a lower margin business than we had when Fortnite Battle Royale took off and started funding. our expansion. “Success with the creator ecosystem is a great achievement, but it means an important structural change in our economy.”
All employees affected by the job cuts will receive a severance package that includes six months of their base salary. They will also receive six months of medical coverage paid for by Epic Games in the United States, Canada and Brazil.
In addition to the layoffs, Sweeney revealed the sale of Bandcamp for an undisclosed amount just 18 months after acquiring the platform. Music marketing company Songtradr is the new owner of Bandcamp.
Delving into the Metaverse
The North Carolina-based video game development company secured $2 billion in funding for metaverse-related development led by Sony Group Corporation and KIRKBI in April 2022. The round raised its valuation to a whopping $32,000. millions of dollars.
Later that year, Epic announced the launch of its first nft game, called Blankos Block Party, on its Game Store.
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