Things aren’t looking good for Epic Games. The decline in Fortnite’s popularity, the unfavorable outcome of their lawsuit with Apple, and the Epic Games Store’s inability to become the top choice for gamers despite years of offering free games have put the company in a tough financial situation. The company’s straightforward solution to this challenge? Letting go of 830 of its employees. Here are the details…
Epic Games in Trouble: Layoffs, Divestitures Signal Financial Woes
Epic Games announced plans to lay off 16% of its workforce, affecting approximately 870 employees. The company also revealed its intentions to sell off Bandcamp, an online music distribution platform it had acquired last year, and divest a significant portion of SuperAwesome, a firm specializing in safe technology for children.
Epic Games CEO, Tim Sweeney, in a note to employees, mentioned that the company had overspent its earnings and had no other choice but to take this step to continue its growth. Sweeney stated that while efforts were made to reduce company costs, layoffs became inevitable to maintain financial sustainability.
The sales of Bandcamp and SuperAwesome are also aimed at improving the company’s financial situation. Bandcamp will join the music market company Songtradr, while SuperAwesome’s advertising business will continue as an independent company.
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(via)
