Industry giant Epic Games will be laying off 16% of its staff and selling its subsidiary businesses, CEO Tim Sweeney notified employees on Thursday morning. The decision comes as a last-ditch effort to stabilize the company’s finances without interrupting future game development.
While employees will receive a gratuitous severance package and career counseling, fans of Epic Games believe the layoffs could be avoided if not for irresponsible spending.
Epic Games, Inc. prepares to lay off 16% of its workforce in a historic attempt to save its finances from dire straits. (Source: Twitter)
BREAKING: Epic Games Inc., an American game developer known for AAA titles like Fortnite and Fall Guys, is attempting to reconcile a major loss of funds by laying off almost 900 employees. The news was reported early September 28th by Jason Schreier, a Bloomberg reporter and New York Times best-selling author.
In a series of Twitter updates ahead of his Bloomberg article, Schreier updated readers with the shocking news that “Epic Games, the maker of Fortnite and Unreal Engine, is laying off a whopping 16% of employees (or around 900 people)”.
The first layoff rumors appeared on Jason Schreier’s Twitter.
This news came as a shock to some staff members, while others could sense that this layoff was coming. Schreier also noted that certain employees lost access to Slack, a messaging and organization app for businesses. By cutting off access to company tools, affected employees suspected that a layoff was about to occur.
On Thursday morning, Epic Games CEO Tim Sweeney sent an email to Epic employees informing them of the layoff and updating them about the future of the company. In addition to letting almost 900 employees go, Epic Games is also going to be selling off some of its subsidiaries. Notable divestitures include SuperAwesome, which will become an independent advertisement firm, and Bandcamp, a previously-owned music marketplace that is soon to become a part of Songtradr.
Epic Games CEO Tim Sweeney makes an official statement to Epic employees.
The company continues to update its employees through all-staff meetings and subsequent updates, letting them know about the next steps they can take. Epic Games has managed to temper any formal outrage from employees due to the extensive severance package being offered to everyone affected by the layoffs. With six months of base pay, six months of healthcare, and open investment opportunities through the end of the year, Epic Games is set up to offer groundbreaking levels of support.
In addition, the Fortnite developer will be offering transitional services and other types of assistance to help affected employees remain aligned on their career paths. By spinning out their subsidiary ventures, they are able to afford these massive severance benefits for laid-off staff.
Fans of Epic Games question the discrepancy between a large annual revenue and the need to lay off 16% of its workforce. (Source: Twitter)
Gamers and fans of the company are not convinced by the CEO’s statement, however. While Tim Sweeney stated that the company has been “spending way more money than we earn” over the last couple of years, Twitter users believe that the company still pulls in annual profits big enough to avoid massive layoffs like this. For many, this seems to be a mark of poor money management.
Epic Games will be providing additional updates and information as staff meetings and other employee proceedings wrap up. The company will have a large meeting in late October, where gamers and employees alike are hoping to be clued in on future financial plans.