Epic Games, the maker of the ever-popular “Fortnite”, has started workforce downsizing with the termination of around 830 employees. Almost 16% of the workers will be affected by this Epic Games Layoffs. Not only this, they are also dismembering their music production company, Bandcamp.
Tim Sweeney’s Reasons for the Layoffs
This doesn’t stop here as the company will also offshoot the Kid-Safety tools platform, SuperAwesome. In an email to the employees, CEO Tim Sweeney said that there was very little profit margin when it came to Fortnite’s revenue sharing. Fortnite is gaining its popularity again in creator content, but most of it goes to the shared revenue.
The lower profitability margin has led to these major Epic Games Layoffs. According to the CEO, two-thirds of the reduction in employees were outside the core development teams. This would reduce the detrimental effects of their revenue-sharing and as per Tim “get to the other side of Profitability”.
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Other Challenges Faced by Epic Games
Epic Games Layoffs are not the only problems faced by the company. They are also in a legal battle with Apple Co. since 2020. This was after they alleged that Apple’s practice of imposing commissions of up to 30% on in-app payments on iPhones and other devices was found to have violated U.S. antitrust rules.
Recently, the video game industry has been facing a slowdown, mainly because of inflation. Due to the high inflation rates, gamers have changed their ways of picking popular gaming titles these days.
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