Fortnite maker Epic Games is cutting 16% of its workforce

October 02, 2023:On Thursday, Epic Games announced significant changes, including a 16% reduction in its workforce, the sale of its music venue Bandcamp, and the spin-off of most of its SuperAwesome services.

 CEO Tim Sweeney shared in a memo on the company’s website that nearly two-thirds of the approximately 830 job cuts will be in areas outside of core development, allowing the company to reduce costs while maintaining its key initiatives.

Sweeney explained that Epic, known for games like Fortnite, had been actively working to cut expenditures, particularly in marketing and events, but ultimately determined that product releases are crucial to achieving financial stability.

 He acknowledged that Epic had been spending more than it earned, focusing on evolving the company and expanding Fortnite into a metaverse-inspired ecosystem for creators. He also admitted that his earlier optimism about avoiding layoffs was unrealistic.

In addition to the layoffs, Epic Games will sell its music platform Bandcamp, which it acquired the previous year, to Songtradr, a music licensing platform.

 Songtradr has indicated that it will continue to operate Bandcamp as a marketplace and music community focusing on an artist-first revenue-sharing model.

Furthermore, Sweeney revealed that Epic’s advertising business for SuperAwesome, catering to kid-friendly services, will operate independently under the SuperAwesome brand.

These changes at Epic Games reflect a broader trend in the tech industry, marked by layoffs and adjustments as the sector grapples with slowing growth and higher interest rates.

Epic Games, a privately held company with a significant minority stake owned by China’s Tencent, was valued at over $30 billion in 2022.