Based in Cary, North Carolina, the video game publisher informed employees through a memo that the layoffs are not linked to artificial intelligence. Instead, they are a response to broader industry issues, including slower growth, reduced consumer spending, and tighter cost structures. Titles like Fortnite are facing stiff competition for attention from social media and other online entertainment options.
Additionally, Epic noted that it has its own internal challenges. For instance, the company is “only in the early stages of returning to mobile” following legal disputes with Apple and Google regarding app store payments.
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“This isn’t our first time facing challenges. Epic navigated significant changes in the 1990s with the transition from 2D to 3D with Unreal 1; in the 2000s, we developed console games like Gears of War; and in 2012, we shifted to online gaming with Paragon and Fortnite,” CEO and founder Tim Sweeney mentioned in the memo.
“Current market conditions are the most extreme we’ve encountered since those early days, marked by major disruption in the industry, but also significant opportunities for companies that emerge successful,” he further stated.
Following Tuesday’s layoffs, Epic now has 4,000 employees, representing about 20% of its workforce.
The last substantial layoffs at the company occurred in 2023 when it reduced its workforce by 830 positions, which was roughly 16% of the total at that time.
(Edited by : Juviraj Anchil)
