Epic Games Lays Off 16% Of Its Workforce – Sells Bandcamp

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Epic Games Cutting 870 Jobs 

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The Fortnite developer, Epic Games, is laying off 16% of its workforce. It means 870 of its employees will be out of job.  

Furthermore, it is selling Bandcamp. It is an online music site that it bought last year. 

The company said that it has been trying to cut costs. However, it is still spending more than it earns. 

Thus, the only way to solve its financial woes is a massive layoff. According to its CEO, Tim Sweeney

“We concluded that layoffs are the only way, and that doing them now and, on this scale, will stabilize our finances.” 

But the writing was on the wall for many years. 

Ahead of the news, Epic disabled Slack for employees. 

One of the issues is Fortnite’s failure to continue growing. Even though it begins to grow again, the growth is driven by creator content. 

Employees who are affected will receive six months of severance and health benefits. 

For some, this news was shocking considering the company’s incredible solvent state. Its Fortnite game has more than 230 million players. In 2022, it gained 34.3 million daily users. It was bringing around $6 billion in revenue a year. 

Last year, its Unreal Engine fees and revenues from its official store reached $355 million. 

With such massive figures, it is indeed difficult to comprehend how the company is still losing money and needs to lose 16% of its workforce. 

In addition to letting go more than 800 of its employees, Epic is also selling Bandcamp. The site is a place where independent artists could use instead of going to streaming platforms. The acquisition raised eyebrows in 2022. Some questioned the company’s decision. How would these two businesses function together? 

The company has been in a legal fight against Apple and Google. It alleges that these two owners of app stores are using anti-competitive practices. 

Legal Fight

The legal fight is ongoing. There are no clear indications of when or if Fortnite will return to the Apple App Store.  The dispute started in August 2020 when Epic Games introduced a direct payment system within Fortnite, bypassing Apple’s in-app purchase system and violating Apple’s App Store policies. In response, Apple removed Fortnite from the App Store. 

Epic noted that it has been taking various steps to lower its legal expenses. But it will continue to fight against the two tech companies for distribution monopolies and taxes. 

Meanwhile, the company brought back the Share the Wealth emote after firing nearly 900 employees. It appears that the emote was only sold for a limited period. It was removed when the company eliminated the entire Daily Rotation tab after the emote went live. 

Epic is a privately owned company. In that case, it is not obliged to disclose any of its financial information. Its CEO is against the concept of a wealth tax. He claimed that it would affect people like him as he needs to sell his equity in the company anytime it becomes valuable.

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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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