Fortnite Developer Epic Games Slashes 900 Jobs, 16% of Workforce
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Epic Games, the developer behind popular titles like Fortnite and Unreal Engine, has cut 900 jobs, amounting to 16% of its workforce.
This move has raised concerns about the future of one of the gaming industry’s major players, particularly as the company’s CEO, Tim Sweeney, and Tencent Holdings navigate these changes, holding a substantial stake in the company.
Epic Games, the renowned developer behind Fortnite and Unreal Engine, is cutting approximately 900 jobs, representing 16% of its employee base. The decision was communicated via an internal memo disclosed by an anonymous source. This move raises questions about the future of one of the gaming industry’s major players.
The move also marks a pivotal moment for Epic Games, which stands as one of the world’s largest privately held video game companies. CEO Tim Sweeney holds the majority of shares, while Chinese conglomerate Tencent maintains a substantial 40% stake.
As the gaming industry continues to evolve and adapt to changing trends, the repercussions of this workforce reduction are anticipated to have far-reaching consequences for both the company and the broader gaming landscape.
The announcement coincides with Epic Games’ declaration today that, starting October 27, the cost of Fortnite V-Bucks will rise in the United States and numerous other nations. In a statement, the company clarified that the price hike, averaging 12% to 15% per bundle, is attributed to economic variables, including inflation and currency rate fluctuations.
At a similar time, Epic Games has taken its antitrust battle with Apple to the US Supreme Court, seeking a review of a lower court’s ruling. Epic alleges that Apple has unfairly monopolized the mobile app space with its iOS and in-app purchasing system, resulting in substantial commissions.
In recent years, there was a surge in layoffs across various industries as businesses sought to cut costs and boost profits. A significant driver behind these cutbacks was the adoption of AI, which promised more efficient automation. According to the sources, the United States and the United Kingdom experienced notable increases in unemployment rates due to automation technologies like chatbots and natural language processing software, which impacted sectors from finance to retail.
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