Practically every gaming studio has been hit by layoffs one way or another over the last few years. In particular, the likes of Microsoft, Sony, EA, Ubisoft, and more have had it far worse than others, leading to job cuts in the thousands.
Similarly, Epic Games has come forward with a huge announcement today. The team behind Fortnite has confirmed that it is letting go of 1000 employees as of today.
Following an update posted on the Epic Games website, it has been confirmed that CEO Tim Sweeney shared a note with the team announcing the latest round of job cuts. He blamed the downturn in Fortnite engagement and ongoing losses for this tough decision. Elsewhere, Epic Games has also taken measures to cut costs by over $500 million in order to achieve stability for the future.
As Tim Sweeney puts it, the studio’s challenges aren’t completely isolated from those of other large studios in the industry. In the note, he discussed dwindling console sales, the current economic climate, and other factors that have ultimately contributed to this decision.
Epic Games also acknowledged its own shortcomings while delivering Fortnite updates and content to continue engaging audiences. Moreover, the CEO made it a point to highlight that AI did not play any kind of role in these 1000 job cuts.
“We’re laying off over 1000 Epic employees. I’m sorry we’re here again. This layoff, together with over $500 million of identified cost savings, puts us in a more stable place.” -Tim Sweeney
The team intends to focus on developing Fortnite content and improving Unreal Engine technology moving forward. CEO Tim Sweeney believes the studio will eventually come out of this situation stronger than ever after rebuilding its foundations once again.
For the laid-off employees, Epic Games intends to offer a severance package with four months of base pay and other incentives. Of course, this doesn’t make the mass layoffs any less sad, and this announcement continues the trend of poor working conditions for developers in the industry.
