According to Bloomberg News, “Fortnite” creator Epic Games is cutting off approximately 900 employees, or 16% of its workforce. The videogame business is seeing a spending slowdown as inflation-weary gamers become more picky in selecting popular titles. The job layoffs were communicated in a note to employees, according to the article, which cited persons familiar with the situation. Epic Games could not be reached for comment right away.
“For a while now, we’ve been spending way more money than we earn,” Chief Executive Officer Tim Sweeney wrote in a memo to employees seen by Bloomberg News. “I had long been optimistic that we could power through this transition without layoffs, but in retrospect, I see this was unrealistic.”
Epic has been fighting Apple in court since 2020
Legacy videogame publishers have been competing for top rankings with new entrants such as Warner Bros Discovery, whose “Harry Potter”-based game “Hogwarts Legacy” was a huge success. Epic has been fighting Apple (AAPL.O) in court since 2020 when the gaming company claimed that Apple’s practice of charging up to 30% commissions on in-app payments on iPhones and other devices violated antitrust laws in the United States.
Apple urged the United States Supreme Court on Thursday to overturn an order demanding modifications to its App Store policies as a result of the antitrust case.