Epic Video games has introduced it’s shedding roughly 16 % of its workforce, leading to round 830 workers dropping their jobs.
In a statement posted by Epic president Tim Sweeney, he explains the layoffs as a cost-cutting measure that may embody divesting Bandcamp, which it acquired final 12 months, and spinning off promoting platform SuperAwesome into an impartial firm. Epic had acquired SuperAwesome in 2020. 250 folks can be leaving Epic because of these divestitures.
“For some time now, we have been spending far more cash than we earn, investing within the subsequent evolution of Epic and rising Fortnite as a metaverse-inspired ecosystem for creators,” Sweeney writes in his assertion. “I had lengthy been optimistic that we may energy by this transition with out layoffs, however on reflection I see that this was unrealistic.”
Sweeney then explains that regardless of taking steps to cut back prices, corresponding to scaling again on advertising and occasions, Epic nonetheless fell in need of reaching monetary stability and that layoffs had been the one answer. Sweeney states that two-thirds of the terminations come from groups outdoors of core improvement and that these departures is not going to come on the expense of recreation improvement or strains of enterprise. Sweeney additionally says this would be the solely spherical of layoffs and that Epic will nonetheless be hiring for “essential roles.” Improvement of content material for titles corresponding to Fortnite, Fall Guys, and Rocket League will proceed as deliberate.
Impacted workers will obtain severance packages of six months of base pay and 6 months of Epic-paid healthcare for staff primarily based within the U.S., Canada, and Brazil. Epic will supply staff the choice to speed up inventory choices vesting schedules by the tip of 2024 whereas including two further years from immediately to make use of these choices. U.S. workers also can vest any unearned revenue sharing from their 401k. Lastly, Epic will present profession transition providers and Visa help.
A giant firm assembly is scheduled for subsequent month to debate the corporate’s efforts and priorities. These layoffs come only a few weeks after Epic’s Chief Artistic Officer and Fortnite head Donald Mustard introduced his retirement.