Epic Games announces layoffs as part of a restructure.

Posted by zmnteam

Epic Games announced a major round of layoffs on September 28, 2023, saying it is reducing headcount by around 830 employees, or about 16% of the company. The move is part of a broader restructuring effort aimed at bringing spending in line with the company’s financial reality.

In a message to staff, Epic CEO Tim Sweeney said the company had been spending more than it earns and that earlier optimism about avoiding layoffs proved unrealistic. Epic also confirmed it is divesting the online music marketplace Bandcamp and spinning off most of SuperAwesome, its kid-focused digital services business.

Key points

Layoffs: Around 830 roles impacted, roughly 16% of Epic’s workforce.
Restructure: Epic is selling Bandcamp and spinning off most of SuperAwesome as it refocuses on core priorities.
Divestitures: About 250 additional people are leaving Epic through the Bandcamp and SuperAwesome transactions.
Focus areas: Epic said it will continue prioritizing products such as Fortnite, Unreal Engine, and the Epic Games Store.

Epic said the majority of affected roles were outside of core development teams. The company framed the changes as necessary to improve efficiency and create a more sustainable cost structure while continuing to invest in its long term platform and tooling ambitions.

The announcement added to a wider wave of cost cutting across the games industry in 2023, as many publishers and studios adjusted budgets after years of rapid expansion. For players, Epic did not announce immediate changes to live services on the day of the memo, but the company’s internal reorganization may affect timelines for some initiatives.