Epic Games on Tuesday said it will lay off more than 1,000 employees as the video game publisher moves to cut costs amid industry-wide pressures and company-specific challenges, AP reported.
The Cary, North Carolina-based company said the job reductions are not linked to artificial intelligence, but reflect slower growth in the gaming sector, weaker consumer spending and rising cost pressures. It also noted that titles such as Fortnite are increasingly competing for users’ attention against social media and other digital entertainment platforms.
The company added that it is also dealing with internal hurdles, including being “only in the early stages of returning to mobile” following prolonged legal battles with Apple and Google over app store payment systems.
“This isn’t our first time being here. Epic survived upheavals in 1990s with the move from 2D to 3D with Unreal 1; in the 2000s building console games with Gears of War; and in 2012 moving to online gaming with Paragon and Fortnite,” chief executive and founder Tim Sweeney said in a memo to employees.
“Market conditions today are the most extreme we’ve seen since those early days, with massive upheaval in the industry accompanied by massive opportunity for the companies that come out as winners on the other side,” he added.
Epic said it will have around 4,000 employees after the latest round of layoffs, which account for roughly 20 per cent of its workforce.
The company last undertook large-scale job cuts in 2023, when it laid off 830 employees, or about 16 per cent of its staff at the time.
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