CEO Tim Sweeney cited decreasing revenue from Fortnite as a reason for the layoffs and said in a memo that 'we’ve been spending way more money than we earn.'
—began to dry up. According to the outlet, CEO Tim Sweeney claimed that the company’s growth had been fueled by, in which developers can create their own maps and receive 40% of its revenue in exchange. Sweeney reportedly said that this revenue stream was “a lower margin of business” when compared to other sources of income from the game, such as buying character skins, which allowed the company to grow quickly. Now, the company’s profits can’t support its staff.
The buck unfortunately does not stop there. Sweeney revealed that an additional 250 employees would also be leaving the company as Epic Games sells two previous acquisitions. The first is the online music distribution platform Bandcamp and the other is Super Awesome, a“kidtech platform” that Epic Games acquired in 2020. Bloomberg reports that two-thirds of the layoffs occurred in departments outside of core development.
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