Epic Games, the studio behind the popular Fortnite videogame, is the latest to join the wave of tech giants to cut jobs from its workforce, its CEO Tim Sweeney announced in a company email Thursday.
An estimated 870 employees (16% of its workforce) will be affected.
According to the CEO, reducing costs and moving to net zero hiring have been ongoing efforts, but the company has still ended up “far short of financial sustainability” which lead the gaming giant to resort to layoffs.
“I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic,” Sweeney explained.
In line with its cost-cutting measures, Epic will also be making divestitures, particularly with its online audio distribution platform Bandcamp, as it joins the B2B music platform Songtradr.
Additionally, SuperAwesome will continue to run as an independent company separate from Epic Games.
Head of PlayStation Steps Down
On the other side of the gaming world, Sony Interactive Entertainment’s CEO Tim Ryan has decided to step down only four years into the role.
“After 30 years, I have made the decision to retire from SIE in March 2024,” the PlayStation head wrote in a press release. “I’ve relished the opportunity to have a job I love in a very special company, working with great people and incredible partners. But I’ve found it increasingly difficult to reconcile living in Europe and working in North America.”
The decision comes despite record-breaking sales of Playstation 5, alongside positive sales performances from popular games such as The Last of Us Part 1 and Marvel’s Spider-Man 2.
Ryan will officially leave his post April of next year, while Sony Group Corporation President COO and CFO Hiroki Totoki will assist him during the transitional period.