Tech layoffs have been witnessing a cool down since the peak it witnessed in the first half of this year. However, gaming company Epic Games has announced a fresh round of layoffs, removing around 16 per cent or 830 employees from its workforce. The company has attributed these job cuts to excessive expenditure. Epic Games CEO Tim Sweeney made the announcement in an open letter.
Epic Games is popular for games like Fortnite and Gears of War. CEO Sweeney claimed that this was the only way to stabilize the company's financial health.
Sweeney revealed that Epic Games had been actively seeking cost reductions by freezing hiring and curtailing expenditures on marketing and events. While the concept of the metaverse continues to evolve, Sweeney expressed the company's commitment to developing the necessary infrastructure for its games to thrive within the metaverse ecosystem. As an example, Epic Games recently collaborated with LEGO to create an "immersive digital experience" designed for children.
Also Read: JioFiber, AirFiber prepaid recharge plans under the price of Rs 1,000
Severance Pay and Other Benefits to Laid-Off Employees
For those affected by these measures, Epic Games is offering a comprehensive severance package, encompassing six months of base pay and continued healthcare benefits. Additionally, the company is extending the stock option vesting schedule through 2024 and granting an additional two years for the exercise of these options. Notably, a majority of the layoffs affect teams outside of core development.
Despite these organizational changes, Sweeney remains optimistic about Epic Games' future, citing the enduring success of Fortnite and the Unreal Engine. In the near future, the company will host Unreal Fest, with some projects potentially experiencing delays due to resource constraints. Sweeney, however, emphasized the willingness to adjust schedules to secure the company's profitability and position it as a prominent metaverse entity.
Epic Games affirmed that it will not reduce funding for its core businesses and will maintain its commitment to Fortnite first-party development, as well as supporting the Fortnite creator ecosystem.