{"id":36077,"date":"2023-09-28T21:00:18","date_gmt":"2023-09-28T20:00:18","guid":{"rendered":"https:\/\/www.xtremeservers.com\/blog\/fortnite-maker-epic-games-laying-off-830-employees\/"},"modified":"2023-09-28T21:00:18","modified_gmt":"2023-09-28T20:00:18","slug":"fortnite-maker-epic-games-laying-off-830-employees","status":"publish","type":"post","link":"https:\/\/www.xtremeservers.com\/blog\/fortnite-maker-epic-games-laying-off-830-employees\/","title":{"rendered":"Fortnite Maker Epic Games Laying Off 830 Employees"},"content":{"rendered":"<div>\n<section class=\"article-page\">\n<p>Epic Games, the North Carolina-based studio behind Fortnite and Unreal Engine, has suffered a significant round of layoffs.<\/p>\n<section data-transform=\"mobile-ad-break\"><\/section>\n<p>First reported by <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-09-28\/epic-games-is-cutting-about-900-jobs-or-16-of-staff?srnd=technology-vp#xj4y7vzkg\">Bloomberg<\/a>, Epic Games is laying off 830 employees, or about 16 percent of its workforce. Epic Games shared a memo CEO Tim Sweeney sent out to staff in <a href=\"https:\/\/www.epicgames.com\/site\/en-US\/news\/layoffs-at-epic\">a new blog post<\/a>.<\/p>\n<p>Separately, Epic is &#8220;divesting&#8221; music service platform <a href=\"https:\/\/www.ign.com\/articles\/fortnite-bandcamp-epic-games\">Bandcamp<\/a> and will spin off most of <a href=\"https:\/\/www.superawesome.com\/superawesome-joins-the-epic-games-family\/\">SuperAwesome<\/a>, a kid-safe technology company. Both were acquired by Epic Games in 2022 and 2020, respectively. Around 250 people are leaving Epic through the divestitures from Bandcamp and SuperAwesome.<\/p>\n<p>You can read the full memo below. <\/p>\n<aside>\n<p><em>Hi everyone,<\/em><\/p>\n<p><em>As we shared earlier, we are laying off around 16% of Epic employees. We&#8217;re divesting Bandcamp and spinning off most of SuperAwesome.<\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>For a while now, we&#8217;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. I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic.<\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>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. Success with the creator ecosystem is a great achievement, but it means a major structural change to our economics.<\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>Epic folks around the world have been making ongoing efforts to reduce costs, including moving to net zero hiring and cutting operating spend on things like marketing and events. But we still ended up far short of financial sustainability. We concluded that layoffs are the only way, and that doing them now and on this scale will stabilize our finances.<\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>We&#8217;re also making some divestitures. Bandcamp is joining Songtradr, a music marketplace company supporting artists. SuperAwesome\u2019s advertising business will become an independent company under the SuperAwesome brand, led by their current CEO Kate O\u2019Loughlin. Kids Web Services (KWS), the parent verification and consent management toolset, will remain part of Epic. <\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>Saying goodbye to people who have helped build Epic is a terrible experience for all. The consolation is that we&#8217;re adequately funded to support laid off employees: we\u2019re offering a severance package that includes six months base pay and in the US\/Canada\/Brazil six months of Epic-paid healthcare. We\u2019re offering to accelerate people\u2019s stock option vesting schedule through the end of 2024 and are giving two additional years from today to exercise the options. In the US we\u2019re also offering to vest any unearned profit sharing from their 401k. And we\u2019ll provide benefits including career transition services and visa support where we can.<\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>For those still at Epic, you\u2019ll hear more from senior leaders about the path forward for your team. Epic\u2019s prospects for the future are strong. We have amazing game experiences across multiple platforms. We\u2019ve built the best engine in the world, and will be hosting Unreal Fest next week to bring the community together and spotlight the things they are building with Unreal Engine and UEFN. Creators are making a living building for the Fortnite ecosystem, with time in third-party games now exceeding first-party. <\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>We&#8217;re cutting costs without breaking development or our core lines of businesses so we can continue to focus on our ambitious plans. About two-thirds of the layoffs were in teams outside of core development. Some of our products and initiatives will land on schedule, and some may not ship when planned because they are under-resourced for the time being. We\u2019re ok with the schedule tradeoff if it means holding on to our ability to achieve our goals, get to the other side of profitability and become a leading metaverse company. <\/em><\/p>\n<p><em><\/em><\/p>\n<p><em>-Tim<\/em><\/p>\n<\/aside>\n<p>Meanwhile, several employees at Epic-owned <a href=\"https:\/\/www.ign.com\/articles\/epic-games-has-acquired-fall-guys-developer-mediatonic\">Mediatonic<\/a>, the developer of <a href=\"https:\/\/www.ign.com\/articles\/fall-guys-ultimate-knockout-review\">Fall Guys<\/a>, have taken to the social media platform X (formerly Twitter) to announce they have been made redundant as part of the layoffs. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">So yeah, it&#8217;s looking like I might be getting laid off. If anyone has any Level Design roles going I&#8217;d greatly appreciate any pointers or connections \u2665\ufe0f<\/p>\n<p>\u2014 Max Boyle \ud83c\udff3\ufe0f\u200d\ud83c\udf08 (@BoyleInThe_Bag) <a href=\"https:\/\/twitter.com\/BoyleInThe_Bag\/status\/1707413566863663364?ref_src=twsrc%5Etfw\">September 28, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Unfortunately, I am one of the people affected by the layoffs today at Epic. I&#8217;m absolutely devastated to leave behind so many amazing Mediatonic colleagues who I loved.<\/p>\n<p>So: the job search begins! If you need an experienced writer or narrative designer, please get in touch \ud83d\ude42<\/p>\n<p>\u2014 Ed Fear (@edfear) <a href=\"https:\/\/twitter.com\/edfear\/status\/1707423139993383222?ref_src=twsrc%5Etfw\">September 28, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Hello! I&#8217;m one of those lucky individuals effected by layoffs \ud83d\ude42 Looking for positions in design\/level design (i have experience in both). If anyone has connections\/links\/referrals id appreciate it \ud83e\ude77<\/p>\n<p>\u2014 Dorian \u2744\ufe0f (@doriandotexe) <a href=\"https:\/\/twitter.com\/doriandotexe\/status\/1707418580344524855?ref_src=twsrc%5Etfw\">September 28, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Hello all! As you&#8217;ve likely seen through the grapevine, I&#8217;m now looking for work! My expertise is within QA Technician, automation and SDET based roles. Please reach out if you have any open roles for me!<\/p>\n<p>\u2014 Adrian Bennett (@Volks42) <a href=\"https:\/\/twitter.com\/Volks42\/status\/1707414603414618542?ref_src=twsrc%5Etfw\">September 28, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">unfortunately, i&#8217;m one of the unlucky people affected by the Epic lay-offs today. <\/p>\n<p>if anyone is looking for an experienced art lead or generalist, ideally in stylized games, please give me a shout \u2764\ufe0f\ud83d\ude4f<\/p>\n<p>\u2014 Stef (@stefscribbles) <a href=\"https:\/\/twitter.com\/stefscribbles\/status\/1707425230145138776?ref_src=twsrc%5Etfw\">September 28, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Founded in 1991, Epic Games is best known for creating <a href=\"https:\/\/www.ign.com\/articles\/unreal-engine-5-officially-released\">Unreal Engine<\/a> and has developed a long list of games, including <a href=\"https:\/\/www.ign.com\/games\/unreal\/reviews\">Unreal<\/a>, the first four entries in the <a href=\"https:\/\/www.ign.com\/articles\/2006\/11\/07\/gears-of-war-review-2\">Gears of War series<\/a>, and most notably the free-to-play battle royale game <a href=\"https:\/\/www.ign.com\/articles\/unreal-engine-5-officially-released\">Fortnite<\/a>. <\/p>\n<p>Fortnite, in particular, has become an extremely profitable game for Epic. In 2021, Fortnite was reported to have generated <a href=\"https:\/\/www.ign.com\/articles\/fortnite-made-9-billion-in-two-years-while-epic-games-store-has-yet-to-turn-a-profit\">$9 billion in two years and had 400 million registered users at the time<\/a>.<\/p>\n<p>News of layoffs comes just weeks after Epic&#8217;s Chief Fortnite Architect <a href=\"https:\/\/www.ign.com\/articles\/donald-mustard-one-of-fortnites-chief-architects-is-retiring-from-epic-games\">Donald Mustard announced his departure<\/a>, with Charlie Wen, a Marvel veteran who helped design God of War protagonist Kratos, replacing him.<\/p>\n<p>Epic Games was embroiled in <a href=\"https:\/\/www.ign.com\/articles\/epic-vs-apple-became-the-internets-trial\">a legal feud<\/a> with tech giants Apple and Google. However, Epic lost the case <a href=\"https:\/\/www.ign.com\/articles\/epic-v-apple-judge-rules-apple-must-allow-developers-outside-payment-options\">in 2021<\/a>, with the ruling <a href=\"https:\/\/www.ign.com\/articles\/apple-scores-another-win-in-epic-antitrust-dispute\">upheld by the U.S. Ninth Circuit Court of Appeals earlier this year<\/a>. Epic <a href=\"https:\/\/www.documentcloud.org\/documents\/23993283-epic-supreme-court-petition?responsive=1&amp;title=1\">recently requested the U.S. Supreme Court<\/a> weigh in on the antitrust case.<\/p>\n<section data-transform=\"divider\"><\/section>\n<p><em>Taylor is a Reporter at IGN. You can follow her on Twitter <\/em><a href=\"https:\/\/twitter.com\/TayNixster\"><em>@TayNixster.<\/em><\/a><\/p>\n<\/section>\n<\/div>\n<p><a href=\"https:\/\/www.ign.com\/articles\/fortnite-maker-epic-games-laying-off-870-employees\">Go to Source (IGN.com)<\/a><\/p>\n<p>All content and images belong to their respected owners. This article is aggregated for informational purposes only with full credit to the source.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Epic Games, the North Carolina-based studio behind Fortnite and Unreal Engine, has suffered a significant round of layoffs. First reported by Bloomberg, Epic Games is laying off 830 employees, or about 16 percent of its workforce. Epic Games shared a memo CEO Tim Sweeney sent out to staff in a new blog post. Separately, Epic<\/p>\n","protected":false},"author":3,"featured_media":36078,"comment_status":"registered_only","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,35,9],"tags":[355,10184,391,1041,511,169,3356,309,3581,390],"class_list":["post-36077","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-releases","category-ps4","category-reviews","tag-behind","tag-carolinabased","tag-engine","tag-epic","tag-fortnite","tag-games","tag-north","tag-studio","tag-suffered","tag-unreal"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fortnite Maker Epic Games Laying Off 830 Employees | Xtreme Servers<\/title>\n<meta name=\"description\" content=\"View Fortnite Maker Epic Games Laying Off 830 Employees for free, here on XtremeServers. Discover more great articles on our site. 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