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The
Cary, North Carolina-based video game publisher said in a memo
to employees that the job cuts are not related to artificial
intelligence. Rather, they stem from industry-wide challenges
such as slower growth, weaker spending and tougher cost
economics. Games like Fortnite are also competing for people’s
attention against social media and other forms of online
entertainment.
In addition, Epic said it's had its own company-specific
hurdles, for example, it is “only in the early stages of
returning to mobile” after court battles with Apple and Google
over app store payments.
“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,” CEO and founder Tim
Sweeney said in the memo.
“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 has 4,000 employees after Tuesday's layoffs, which
amount to about 20% of the company's workforce.
The company's last large-scale layoffs were in 2023, when it cut
830 jobs. This amounted to about 16% of Epic's workforce at the
time.
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