Epic Gamesthe famous Fortnite software house, has announced a significant corporate downsizing: around 830 layoffs, equal to 16% of the current workforce. Not only that: the company has sold Bandcamp and will spin off most of SuperAwesome, purchased in 2020.
Epic Games: 830 layoffs, sells Bandcamp
The CEO of Epic Games, Tim Sweeney, explained that although Fortnite is experiencing a renaissance, much of the success is due to content creators. This leads to the sharing of significant profits, but with lower margins than in the initial period of Fortnite Battle Royale. As Il Sole 24 Ore explains, this change in dynamics led the company to reconsider its structure and carry out layoffs to maintain profitability.
In addition to the layoffs, Epic Games also made the decision to divest its online music platform Bandcamp. This choice represents a significant change for society. Especially because he only bought Bandcamp in March 2022.
Two thirds of layoffs does not affect Epic Games’ core development teams. This indicates that the company is trying to preserve the creative core of its core projects, but is cutting resources elsewhere to streamline operations.
This announcement comes at a time when The video game industry is facing significant challenges and changes. New competitors, such as Warner Bros Discovery, have gained ground with successful games such as Hogwarts Legacy, based on the world of Harry Potter.
Furthermore, Epic Games is currently involved in a legal battle with Apple, accusing the company of anticompetitive practices related to in-app transaction fees on Apple devices.
In short, the company is not having a great time. It remains to be assessed whether these cuts to staff and group companies will make a difference.