![]() ![]() Sweeney noted that “two-thirds” of the cuts were “outside of core development.” He wrote that some projects will stay on schedule, while others may be delayed. “Success with the creator ecosystem is a great achievement, but it means a major structural change to our economics.” “While Fortnite is starting to grow again, the growth is driven primarily by creator content with significant revenue sharing, and this is a lower margin business than we had when Fortnite Battle Royale took off and began funding our expansion,” Sweeney wrote. CEO Tim Sweeney owns the majority of Epic Games’ remaining shares, Bloomberg said. ![]() Chinese tech conglomerate Tencent has owned 40% of Epic since 2012, when it paid $330 million for its stake, according to Tencent’s financial reports. This makes the Cary, North Carolina-based company one of the largest privately owned video game companies. Fortnite alone generates billions of revenue each year - and is growing again, Sweeney said. Roughly 250 people are leaving Epic Games due to the divestitures.Įpic Games is valued at $31.5 billion, according to the Wall Street Journal. ![]() The company is also expected to “divest” from two acquisitions, by selling recently unionized music site Bandcamp and “spinning off” most of its marketing company SuperAwesome. Reached for comment, an Epic Games representative pointed Polygon to Sweeney’s memo.Įpic Games employees impacted by the layoffs will get six months of severance and health benefits, Sweeney wrote. “I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic.” “For a while now, we’ve been spending way more money than we earn, investing in the next evolution of Epic and growing Fortnite as a metaverse-inspired ecosystem for creators,” CEO Tim Sweeney wrote in an email to staff. Bloomberg News first reported the layoffs before Epic Games published its internal memo online. Epic Games, which makes Fortnite and Unreal Engine, is laying off a devastating 16% of its workforce, leaving roughly 830 workers without jobs, Management reportedly emailed staff Thursday to share the news. ![]()
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