Fortnite maker Epic Games lays off 1K staffers as flagship game slumps | Latest Tech News
Epic Games said Tuesday it could cut more than 1,000 jobs after a drop in engagement for “Fortnite,” its flagship title, the latest cuts in the video-game industry whose growth has stalled amid financial uncertainty.
The cuts, along with more than $500 million in financial savings from decrease contracting and advertising spending and unfilled roles would put the company in “a more stable place,” Chief Executive Tim Sweeney said in a be aware to workers.
The cuts are the latest in the gaming sector, where corporations have confronted weaker growth as shoppers have been sticking with confirmed titles amid financial uncertainty.
Epic Games seeks to cuts prices after a sharp fall in usage of its flagship game, Fortnite.
But even those, particularly live companies video games, which rely on a regular stream of new content to keep gamers engaged, are now exhibiting indicators of cracks.
“We’ve had challenges delivering consistent Fortnite magic,” Sweeney said, including “market conditions today are the most extreme” since the early days of the company based in 1991.
“The layoffs aren’t related to AI,” Sweeney famous amid industry worries the technology may exchange video-game builders.
The transfer marks Epic’s second major spherical of layoffs in three years. In September 2023, the company cut about 830 jobs, or roughly 16% of its workforce.
Epic Games CEO Tim Sweeney said the layoffs aren’t AI associated. Getty Images
It was not immediately clear what share of employees could be impacted by Tuesday’s announcement.
The gaming sector has confronted mounting strain. In September, Electronic Arts laid off a whole bunch of staff and canceled a Titanfall game that was in development at its Respawn Entertainment unit, according to media experiences. Amazon’s broader job cuts late last 12 months also affected its gaming division.
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