Epic Games, the company behind Fortnite and the Unreal Engine, is laying off hundreds of employees.
On X, games journalist Jason Schreier posted that Epic Games is going to be laying off 16 percent of its employees, which he said comes out to around 900 people. Schreier noted in his post that more information would be posted on his outlet, Bloomberg News, soon. That article has now dropped and confirms that the cuts were announced in a memo to staff.
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NEWS: Epic Games, the maker of Fortnite and Unreal Engine, is laying off a whopping 16% of employees (or around 900 people), sources tell Bloomberg News. More to come
— Jason Schreier (@jasonschreier) September 28, 2023
Epic Games later posted the email about the layoffs, confirming the 16 percent number. The changes aren’t directed at Fortnite or any of its “core businesses.” Instead, Epic Games says it’s “divesting Bandcamp and spinning off most of SuperAwesome.” According to the company, these layoffs come out to approximately 830 employees, with around two-thirds of the layoffs being to “teams outside of core development.” The statement assures staff that there will not be any further layoffs and that these changes are about stabilizing the company financially. Additional reports have since surfaced that Mediatonic, the team behind Fall Guys, has also experienced layoffs, though rumors the studio was shuttered do not appear to be true.
Founded in 1991 by Tim Sweeney, Epic Games is a company known for making such games as Gears of War and Fortnite. The company is also responsible for the Unreal Engine, which is one of the most popular game engines used by the video game industry. Outside of that, the Epic Games Store has played an increasingly big role in the digital marketplace in recent years, with the company often pushing for exclusivity, which has earned some critiques from gamers.
The layoffs are the latest in a recent rash of studios being closed down or having their staff reduced. In August, Volition, the studio behind such beloved titles as Saints Row and Red Faction was shuttered by its parent company, Embracer Group. That company has indicated that more studio closures will be happening in the future. Epic Games is an entirely separate company that’s not under Embracer Group, but the current trend towards layoffs does feel particularly ominous.
We wish all the best to those who’ve lost their jobs following these layoffs at Epic Games, and we hope you land on your feet as soon as possible. Readers, if you’ve got job opportunities in the affected industries, now’s the time to be reaching out to help.
The above article has been updated since publication to reflect Epic Games’ statement on the layoffs.
