BROOKLYN, NY – AUGUST 09: CEO of Epic Games Tim Sweeney speaks onstage throughout Samsung Unpacked New York City at Barclays Center on August 9, 2018 in Brooklyn City.
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Epic Games on Thursday stated it is shedding 16% of its workforce, promoting its music platform Bandcamp and spining off most of its SuperAwesome providers.
In a memo the corporate shared on its web site, CEO Tim Sweeney stated about two-thirds of the job cuts might be “outside of core development,” so the corporate is slicing prices with out interrupting main plans. He stated Epic, which develops and publishes video video games like Fortnite, had been working to chop spending on issues like advertising and marketing and occasions, however “concluded that layoffs are the only way” to succeed in monetary stability.
“For a while now, we’ve been spending way more money than we earn, investing in the next evolution of Epic and growing Fortnite as a metaverse-inspired ecosystem for creators,” Sweeney wrote. “I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic.”
Sweeney additionally introduced that Epic will promote its music platform Bandcamp, which it acquired final 12 months, to Songtradr, a music licensing platform.
Songtradr stated in a separate put up that it “will continue to operate Bandcamp as a marketplace and music community with an artist-first revenue share.”
Sweeney stated Epic’s promoting enterprise for SuperAwesome, which affords kid-friendly providers, will turn out to be an unbiased firm beneath the SuperAwesome model.
The layoffs at Epic Games are the most recent in a rising listing of job cuts throughout tech business, which has confronted slowing progress and better rates of interest since early final 12 months.
Epic is privately held, with China’s Tencent proudly owning a big minority stake. The firm was valued at over $30 billion in 2022.
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Source: www.cnbc.com”