‘Unrealistic’ metaverse ambitions are the reason for Epic Games’ 830 workforce layoffs.

In a stunning turn of events, CEO Tim Sweeney pointed fingers at seismic shifts in the company’s financial landscape as he lamented, “We’re spending far more than we’re bringing in.” The juggernaut behind Fortnite, Epic Games, has taken a drastic measure, slashing its workforce by a staggering 16%, amounting to approximately 830 employees. This drastic action came on the heels of overambitious projections tied to metaverse-inspired revenues, which led the company to hemorrhage funds it couldn’t afford.

In a memo dated September 29, CEO Tim Sweeney laid out the harsh reality for Epic Games’ employees. He wrote, “We’ve come to the stark conclusion that layoffs are the only viable path forward. Implementing them at this juncture and on such a grand scale is imperative to bring stability to our financial standing.” Sweeney further reflected, “I had harbored optimistic hopes that we could navigate this transition without resorting to layoffs, but in hindsight, I realize the impracticality of that vision.”

While Sweeney acknowledged the company’s recent upswing, attributing it to the Fortnite Creator program—an initiative permitting players to craft and vend their in-game content while taking a 40% cut—this pivot came at the expense of dwindling profit margins. He mused, “Our triumph with the creator ecosystem is undeniably a milestone, but it signifies a fundamental overhaul in our financial framework.”

In tandem with the aforementioned layoffs, Sweeney disclosed that an additional 250 employees would part ways with Epic Games. The company also unveiled its plans to divest the recently acquired music website, Bandcamp, and spin off its marketing arm, SuperAwesome—a child-safety tech firm that became part of Epic in 2020.

Notably, employees departing from Epic Games will receive a generous severance package, including six months of pay. Those residing in the United States, Canada, and Brazil can also expect to receive six months of fully covered healthcare.

Beyond its flagship, Fortnite, which boasts an impressive 400 million registered users, Epic Games is the driving force behind the Unreal Engine—a video game development suite that powers acclaimed titles like God of War and PlayerUnknown’s Battlegrounds.

The post ‘Unrealistic’ metaverse ambitions are the reason for Epic Games’ 830 workforce layoffs. appeared first on BitcoinWorld.

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