UNITED STATES: In a move aimed at fortifying its financial standing, gaming powerhouse Epic Games has announced a substantial reduction in its workforce, affecting approximately 16 percent or 830 employees. This decision comes amidst a broader trend of tech companies gradually recuperating from the wave of layoffs witnessed earlier this year.
CEO Tim Sweeney conveyed the news through an open letter, attributing the layoffs to the necessity of reining in excessive expenditure. Epic Games, renowned for hits like Fortnite and Gears of War, faces the imperative of stabilizing its financial health, according to Sweeney.
Sweeney further divulged that the company had been diligently pursuing cost-cutting measures, including freezing hiring and trimming expenses related to marketing and events. This strategic pivot aims to facilitate the development of the essential infrastructure required for Epic Games’ titles to thrive within the evolving metaverse ecosystem.
A recent collaboration with LEGO stands as a testament to this commitment, culminating in an “immersive digital experience” tailored for children.
In a gesture towards its affected workforce, Epic Games has unveiled a comprehensive severance package. This encompasses six months of base pay and uninterrupted healthcare benefits.
Additionally, the company is extending the stock option vesting schedule through 2024, affording an extra two years for the exercise of these options. Notably, the majority of the layoffs impact teams outside the core development division.
Despite these organizational shifts, Sweeney remains sanguine about Epic Games’ trajectory, citing the enduring popularity of Fortnite and the Unreal Engine. The upcoming Unreal Fest, however, may witness certain projects experiencing delays due to resource constraints.
Sweeney emphasized the company’s readiness to adapt schedules to safeguard profitability and secure a prominent role in the burgeoning metaverse landscape.
Epic Games underscored its unwavering commitment to sustaining funding for core businesses, with a steadfast focus on Fortnite first-party development, as well as bolstering the Fortnite creator ecosystem.
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