Tim Sweeney, founder and CEO of Epic Games, sent out emails to employees announcing massive layoffs. Read on to learn more about his statement as well as the reactions from former employees.
Epic Games Lays Off Nearly 900 Employees
Epic CEO Tim Sweeney Explains It Was The Only Way
On September 28, 2023, 870 employees were laid off from Epic Games, the company behind Fortnite and the Unreal Engine. Tim Sweeney, founder and CEO of Epic Games, states in a memo, "We’ve been spending way more money than we earn." This alludes to their multiple investments for Epic and their goal of making Fortnite grow as a metaverse-inspired ecosystem. He continues, "I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic."
With all of Epic’s business ventures but profits failing to catch up, Sweeney explained that meant a "major structural change to our economics." They have been trying to reduce costs across the company worldwide, but ended up short of financial stability. He concludes that "layoffs are the only way and that doing them now and on this scale will stabilize our finances."
Aside from layoffs, Epic will sell off the popular music platform Bandcamp a year after the acquisition. Epic explained in the initial purchase that Bandcamp will have a crucial role in Epic’s goal to "build out a creator marketplace ecosystem for content, technology, games, art, music, and more." Today, Bandcamp has been sold to Songtradr, a music marketplace company.
Finally, Sweeney cites the massive layoffs as a way to cut costs without sacrificing the core of their businesses to move forward with their future plans. He further justifies that this will provide the means to achieve their goals, and "get to the other side of profitability, and become a leading metaverse company."
Staff laid off will be provided severance packages including six months of base pay, six months Epic-paid healthcare, career transition services, and visa support.
Fall Guys Developers Hit Hard
Among the layoffs was Mediatonic, the studio behind the widely successful Fall Guys. Mediatonic joined the Epic Games family in March 2021, mentioning that they’ll "continue to be the same team, working on the same game, but now we’ll have the full power of Epic Games." Over two years later, longtime employees at Mediatonic have been released.
Although the studio was severely affected by the layoffs, Jason Schreier of Bloomberg clarifies that the "reports/rumors that the entire studio shuttered are not true."
Various recently released staff took to Twitter (X) to air out their concerns and frustrations, as well as to seek job offerings. Most notably, the Fall Guys lead artist "stefscribbles," who has a significant following on the social media platform, mentions "the timing could not have been worse" as she’s to give birth within a week.
Some staff sought to deal with the layoffs in jest. Former Mediatonic director and writer "Ed Fear" posted a photo from within the studio’s office, showing Mediatonic letters rearranged to spell "DECIMATION." Fear has been giving praise to his former co-workers’ in the social media platform, and extending help to all affected colleagues.
Sources:
Tim Sweeney Email to Epic Employees
Tim Sweeney pictures from GDC 2023
Jason Schreier of Bloomberg Report
Epic Acquires Bandcamp
Mediatonic Joins Epic Games
