BROOKLYN, NY – AUGUST 09: CEO of Epic Games Tim Sweeney speaks onstage throughout Samsung Unpacked New York City at Barclays Center on August 9, 2018 in Brooklyn City.
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Epic Games on Thursday stated it is shedding 16% of its workforce, selling its music platform Bandcamp and spining off most of its SuperAwesome companies.
In a memo Epic shared on its web site, CEO Tim Sweeney stated about two-thirds of the roughly 830 job cuts shall be “exterior of core growth,” so the corporate is lowering prices with out interrupting main plans. He stated Epic, which develops and publishes video video games like Fortnite, had been working to chop spending on issues like advertising and occasions, however “concluded that layoffs are the one manner” to succeed in monetary stability.
“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 wrote. “I had lengthy been optimistic that we might energy by way of this transition with out layoffs, however on reflection I see that this was unrealistic.”
Sweeney additionally introduced that Epic will promote its music platform Bandcamp, which it acquired final 12 months, to Songtradr, a music licensing platform.
Songtradr stated in a separate submit that it “will proceed to function Bandcamp as a market and music group with an artist-first income share.”
Sweeney stated Epic’s promoting enterprise for SuperAwesome, which presents kid-friendly companies, will change into an unbiased firm underneath the SuperAwesome model.
The layoffs at Epic Games are the most recent in a rising listing of job cuts throughout tech trade, which has confronted slowing development and larger rates of interest since early final 12 months.
Epic is privately held, with China’s Tencent proudly owning a big minority stake. The firm was valued at over $30 billion in 2022.