Epic Games, the renowned video game company, has recently announced a series of significant changes that will have a major impact on the company and its employees. The firm is set to lay off approximately 870 employees, constituting about 16% of its workforce. This decision comes as Epic Games faces financial challenges and aims to stabilize its finances.
One of the measures taken by the company is the divestment of Bandcamp, an online audio distribution platform. Bandcamp will be joining forces with music marketplace company Songtradr, in an effort to streamline operations and reduce costs. Additionally, Epic Games plans to spin off most of SuperAwesome, a kid-safe technology developer. SuperAwesome’s advertising business will become an independent company under the SuperAwesome brand.
According to Epic Games CEO, Tim Sweeney, the company has been spending more money than it earns, necessitating the layoffs to regain financial balance. Despite previous efforts to reduce costs, such as cutting operating spend and halting hiring activities, these measures were not sufficient to achieve financial sustainability.
The majority of the layoffs affected teams outside of core development, potentially leading to delayed schedules for certain products and initiatives due to a lack of resources. However, Epic Games remains steadfast in its commitment to deliver its highly anticipated projects, including the next Fortnite Season and Fortnite Chapter 5.
In a separate development, Epic Games recently filed a petition with the Supreme Court, seeking a reexamination of a ruling related to Apple’s App Store policies. This move reopens the legal battle between Epic Games and Apple as the former continues to fight against the monopolistic practices and hefty taxes imposed by both Apple and Google. Epic Games seeks to ensure that the metaverse, a virtual reality realm, can thrive and create opportunities for developers.
Furthermore, Fortnite players should prepare for an increase in the price of V-Bucks, the in-game virtual currency, in the United States and other countries. This change, set to take effect on October 27, is attributed to economic factors such as inflation and currency fluctuations.
As Epic Games undergoes significant restructuring and combats legal battles, the company remains focused on its dedication to revolutionizing the gaming industry and championing fairness and opportunity for all developers.
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