Epic Games has announced that they will be laying off approximately 16% of their workforce, which amounts to around 830 employees. CEO Tim Sweeney has stated that these layoffs will not have an impact on the company’s core business. Interestingly, two-thirds of the employees being let go are not part of the main development team.
Sweeney explained that in the past, Epic employees have worked together to reduce expenses in various ways, such as freezing hiring, cutting marketing expenses, and organizing events. However, despite these efforts, the company’s financial status is still not up to par. Consequently, laying off employees is the only remaining option to improve the company’s structure and financial standing.
In addition to the layoffs, Epic has also announced the separation of non-core businesses. Bandcamp, an online music platform acquired by Epic a year ago, has been sold to Songtradr, a distribution platform for artists. Furthermore, SuperAwesome, an advertising business designed for children, will be spun off as its own independent company.
TLDR: Epic Games will be letting go of around 830 employees, amounting to approximately 16% of their workforce. CEO Tim Sweeney has assured that this will not affect the company’s core business. The layoffs come as a strategic move to improve the company’s financial situation, after various expense reduction efforts proved insufficient. Additionally, Epic has decided to separate non-core businesses, selling Bandcamp to Songtradr and spinning off SuperAwesome as an independent company.
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