Epic Games is slowing down a lot. Fortnite doesn’t make enough money

Epic Games is slowing down a lot.  Fortnite doesn't make enough money

Epic Games, the company that creates Fortnite, decided to lay off hundreds of people to reduce excessive costs. The company’s authorities talk about “definitely too high expenses” and plan significant cuts.

The creators of Fortnite decided to significantly reduce jobs. Epic Games is to leave almost a thousand employees, which was announced internally by the company’s CEO himself.

Epic Games slows down – Fortnite brings less return

The bad news was announced by Epic Games CEO Tim Sweeney in a memorandum to employees. However, the communication reached Bloomberg reporters.

“For some time now we have been spending way too much compared to how much we earn. For a long time I was optimistic and thought that we could survive this period without layoffs. Looking back, it was unrealistic,” Sweeney admits in a staff memo.

We know from classified information from anonymous informants within the company that the reduction will be significant. This will involve the dismissal of as many as 870 people, i.e. approximately 16 percent. the entire staff. The reason is said to be problems with Fortnite.

The wave of layoffs in the gaming industry continues

Further explanations from the company’s CEO show that the Fortnite Creator program is currently the main source of growth. This allows players to create and sell their own structures in the game to others. Under the agreement, 40 percent however, the profit goes to the creator. As Sweeney puts it, this makes the Creator initiative “a lower margin business.” Other revenues, e.g. the purchase of skins and costumes for heroes, are not able to maintain the company at its current level.

We’ve been seeing quite a lot of downsizing in the gaming industry lately. Last month, the Embracer Group studio Volition was closed after the unsuccessful premiere of the latest Saints Row (2022). Niantic, the creators of Pokemon Go, in June announced the closure of its Los Angeles facility, canceled two game projects and laid off 25 percent. staff. In March, mass layoffs affected the giant Electronic Arts, which reduced its staff by 730 people.

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