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Epic Games Announces 830 Employee Layoffs Due to Unrealistic Metaverse Goals

CEO Tim Sweeney attributes Job Cuts to significant structural changes impacting company economics: 'Spending well beyond our earnings.

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Epic Games Announces 830 Employee Layoffs Due To Unrealistic Metaverse Goals

Crypto News- Epic Games, the company behind the popular game Fortnite, recently announced a significant workforce reduction, affecting around 830 employees. This decision was driven by the company’s overambitious revenue expectations related to the metaverse, which resulted in higher spending compared to their revenue.

Epic Games Announces 830 Employee Layoffs Due to Unrealistic Metaverse Goals

In a memo dated September 29th, CEO Tim Sweeney acknowledged the necessity of these layoffs to stabilize the company’s finances. He had initially hoped to navigate the transition without layoffs but realized that this was an unrealistic expectation.

Epic Games Announces 830 Employee Layoffs Due To Unrealistic Metaverse Goals

In addition to the 830 layoffs, Epic Games plans to part ways with another 250 employees. The company also intends to sell Bandcamp, a music website it had recently acquired, and spin off SuperAwesome, a child-safety tech firm that joined Epic in 2020.

It’s worth noting that Epic Games is committed to supporting the departing employees during this transition. Those leaving the company will receive six months of pay, and employees in the United States, Canada, and Brazil will also have access to six months of paid healthcare.

Epic Games is widely recognized not only for Fortnite, which has an impressive 400 million registered users but also for their Unreal Engine, a video game development suite that powers popular titles like God of War and PlayerUnknown’s Battlegrounds.

Epic Games Announces 830 Employee Layoffs Due To Unrealistic Metaverse Goals
Sources:cointelegraph

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