Epic Games Cuts 830 Jobs Amid Declining Fortnite Revenue

On September 28, Epic Games made a drastic decision to lay off 830 employees, amounting to approximately 16% of its workforce. This move came as a response to the company's dwindling revenue, particularly from its flagship game, Fortnite.

In a candid letter from Epic Games' CEO, Tim Sweeney, it was revealed that Fortnite's profitability has significantly declined compared to its peak during the battle royale craze. Despite ongoing investments, the game's revenue has been unable to sustain previous levels.

To tackle its financial challenges, the company aimed to trim expenses in various areas, including marketing and hiring. However, these efforts fell short, leading to the difficult decision to downsize the workforce and divest certain assets. Epic Games will be selling Bandcamp, acquired in March 2022, and separating the marketing firm SuperAwesome into an independent entity.

In his closing remarks, Tim Sweeney reassured that there would be no further layoffs at Epic Games. The company remains committed to hiring new talent and will provide support to those affected, including severance packages, medical assistance, job placement aid, and visa support.

This significant workforce reduction underscores the company's determination to address its current financial challenges, with Fortnite's decreased revenue serving as a stark reminder of the evolving dynamics within the gaming industry.