Epic Games Slashing 16% of Staff, Selling Divisions
Epic Games, the renowned creator of the immensely popular video game Fortnite, has recently announced a significant restructuring, involving the layoff of approximately 870 employees, which amounts to roughly one-sixth of its workforce.
‘Spending more than we earn’
The decision to cut jobs was communicated to the company’s staff through a memo penned by Epic Games’ founder, Tim Sweeney. In the memo, Sweeney acknowledged the financial challenges the company had been facing.
“For a while now, we’ve been spending way more money than we earn, investing in the next evolution of Epic and growing Fortnite as a metaverse-inspired ecosystem for creators,” said Sweeney.
“I had long been optimistic that we could power through this transition without layoffs, but in retrospect, I see that this was unrealistic.”
Selling Bandcamp and SuperAwesome
While Epic Games is known for creating various video games and is the owner of the popular game engine Unreal, its flagship product, Fortnite, has garnered an astounding 400 million players from around the globe.
In addition to the workforce reduction, Epic Games has made the strategic decision to sell two of its business divisions, namely Bandcamp and SuperAwesome. This divestment will result in an additional 250 individuals departing from the company, although they will retain their current positions, according to Epic.
Impact in Canada
It remains unclear exactly how many Canadian employees at Epic Games will lose their job as a result of this layoff.
If you’re a non-unionized employee, check out our Epic Games Layoffs guide.
You can also use our free Pocket Employment Lawyer tool for real-time insights.
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About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
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