Epic Layoffs

Some belt-tightening is underway at Epic Games, where as many as 900 staff are being laid off. Amid news of Fortnite V-Bucks price increases and a new version of the Fortnite Refer a Friend program came an X from Jason Schreier where the tapped-in Bloomberg reporter revealed layoffs, and a lot of them, saying: "Epic Games, the maker of Fortnite and Unreal Engine, is laying off a whopping 16% of employees (or around 900 people), sources tell Bloomberg News. More to come." That more is already here, as there's a statement confirming the news on the Epic Games Website. This also includes news of divestitures, as Bandcamp is being set free. Tim Sweeney says: "We're cutting costs without breaking development or our core lines of businesses so we can continue to focus on our ambitious plans. About two-thirds of the layoffs were in teams outside of core development. Some of our products and initiatives will land on schedule, and some may not ship when planned because they are under-resourced for the time being. We’re ok with the schedule tradeoff if it means holding on to our ability to achieve our goals, get to the other side of profitability and become a leading metaverse company." Here's more:
While Fortnite is starting to grow again, the growth is driven primarily by creator content with significant revenue sharing, and this is a lower margin business than we had when Fortnite Battle Royale took off and began funding our expansion. Success with the creator ecosystem is a great achievement, but it means a major structural change to our economics.

Epic folks around the world have been making ongoing efforts to reduce costs, including moving to net zero hiring and cutting operating spend on things like marketing and events. But we still ended up far short of financial sustainability. We concluded that layoffs are the only way, and that doing them now and on this scale will stabilize our finances.