BNR – To stabilise its finances, Epic Games, the creator of Fortnite, is undergoing a major restructuring process.
The move resulted in the reduction of 870 jobs, constituting around 16% of its global workforce.
Additionally, the company is divesting Bandcamp, the online music platform it acquired just last year. This decision came as a surprise given the platform’s reputation as a hub for independent artists.
Epic Games CEO Tim Sweeney communicated this decision to the staff, explaining the challenging financial situation.
The company has made efforts to curtail costs, including halting new hiring and reducing operational expenditures like marketing and events. However, it still found itself in a financially precarious position.
Sweeney stated that these layoffs were necessary to bring financial stability to the organisation.
The sale of Bandcamp has raised eyebrows since its acquisition in 2022. The platform is known for providing better returns to independent artists compared to mainstream streaming services.
The company revealed that Bandcamp would now join forces with Songtradr, a music marketplace supporting artists.
Epic Games Pivots for Long-Term Stability
While the specifics of the job cuts and restructuring plans have not been disclosed, Sweeney assured that these measures were taken without disrupting the company’s core development processes.
He also clarified that approximately two-thirds of the job cuts were in areas outside of core development.
Epic Games, recognised for its influential gaming engine, Unreal Engine, is navigating these changes amid the global success of Fortnite. Indeed, the video game has registered more than 400 million users worldwide.
The restructuring aims to realign Epic Games’ operations in the face of evolving market dynamics and financial challenges.