Epic Games Lays Off Staff Amid Unrealistic Metaverse Venture

Epic Games Lays Off Staff Amid Unrealistic Metaverse Venture

Time Stamp: September 29, 2023 3:48 AM
Source Node: 2910315

Expensive Metaverse venture forces Epic Games to lay off 16% of its staff.

Epic Games, the powerhouse behind the video game Fortnite, announced a significant downsizing of its staff.

The company is letting go of approximately 830 employees, which accounts for 16% of its total workforce. The layoffs come in the wake of financial constraints, largely due to overestimated earnings from ventures into the Metaverse.

Can Russia Use Crypto to Bypass Sanctions? (Animated)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

Epic Games CEO Tim Sweeney issued a memo on September 28th, addressing the layoffs as a regrettable but necessary action.

I had long been optimistic that we could power through this transition without layoffs, but in retrospect, I see that this was unrealistic. We concluded that layoffs are the only way and that doing them now and on this scale will stabilize our finances.

Despite the growth driven by the Fortnite Creator program, allowing gamers to craft and market their own in-game merchandise, the financial structure of Epic Games has been adversely affected.

This workforce reduction is not the only significant change at Epic Games. An additional 250 jobs are set to disappear as the company revealed plans to divest its recently acquired music platform, Bandcamp, and to separate its marketing firm, SuperAwesome.

Epic Games is offering a generous severance package to those who are being laid off, including six months of salary and extended healthcare benefits for employees in the United States, Canada, and Brazil. 

Epic Games’ overly optimistic expectations regarding revenue from Metaverse-related initiatives have led to financial imbalance, prompting staff reductions and other organizational changes. The move reveals the risks associated with companies over-committing resources in emerging digital landscapes.

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she’s not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

Time Stamp:

More from Bit Degree