Epic Games fires 870 employees

Fortnite, which is the world's most popular online game, has not reached the revenues that Epic Games had expected for 2023 and has not really grown at the pace expected, which now means that the company has fired as many as 870 employees.

This is despite the fact that, in addition to Fortnite, it licenses its own graphics engine, Unreal Engine, to over 1500 different developers and thus, of course, pulls in lots of money each year, just there. Epic boss Tim Sweeney writes in an internal email that the company has for a long time now spent more money than they have earned, which now comes to an end with the departure of almost 900 employees.

Epic Games CEO Tim Sweeney:

"For a while now, we've been spending way more money than we earn. I have long been optimistic we could power through this transition without layoffs, but in retrospect I see that this was unrealistic."

In the same vein, it is also clear that they are laying off another 250 people next week by dismantling and closing the side projects Bandcamp and the PR firm Superawesome.

Thanks, Bloomberg.