Epic Games Announces Major Layoffs and Sells Bandcamp Amid Financial Challenges

New York, NY (Top40 Charts) Epic Games, the creators of the mega-hit game Fortnite, have announced they'll be letting go of 870 employees, which is about 16% of their team.

They're also parting ways with Bandcamp, an online music platform they bought just last year.

In a note to their team, Epic shared that despite their best efforts to save money, they're still spending more than they're making. CEO Tim Sweeney mentioned that they concluded that layoffs are the only way, and that doing them now and on this scale will stabilize the company finances.

He added that Epic teams globally have tried to cut down expenses, from pausing hiring to reducing marketing costs. But they still couldn't reach their financial goals.

Bandcamp, known for supporting indie artists, will now be joining Songtradr. When Epic bought Bandcamp in 2022, many wondered how the two would mesh. This latest move seems to hint at challenges in that partnership.

While Epic has offices globally, including in the UK, it's still unclear where these job reductions will happen. However, Mr. Sweeney assured that these changes won't disrupt their main business or game development. He mentioned that most of the layoffs are in areas not directly related to game creation.

Besides Fortnite, which boasts a whopping 400 million users, Epic is also celebrated for its Unreal Engine, powering many popular games like Gears of War.