Epic Games, the maker of one of the world’s most successful video games, Fortnite, is laying off 870 jobs – around 16% of its workforce. The company is also selling Bandcamp, the online music site it acquired just last year.
In a memo to staff, Epic CEO Tim Sweeney said that the company had tried to cut costs but was still “spending way more money than we earn.” He said that layoffs were the only way to stabilize the company’s finances.
Sweeney said that the job cuts would be primarily in teams outside of core development. He also said that Epic was selling Bandcamp to Songtradr, a music marketplace company supporting artists.
The sale of Bandcamp comes as a surprise to many, as Epic had only acquired the site last year. Some had questioned how the two businesses would fit together, and this announcement suggests that those doubts were well founded.
The sources for this piece include an article in BBC.