Epic Games announced the termination of employment (PHK) to 1,000 of its employees through an official memo on Tuesday, March 24. This step was taken to stabilize the company's finances.
Epic Games CEO, Tim Sweeney, revealed that the main trigger for this layoff was the decline in the number of Fortnite players since 2025. This condition caused operating expenses to be much larger than the company's revenue.
"The decline in Fortnite players means (shows that) we are spending much more than we are making," Sweeney wrote in his company memo, as reported by TechCrunch on Wednesday, March 25.
Sweeney also added that they needed this cut to maintain the company's funding in the long term. In addition to reducing staff, Epic Games also saved more than $500 million (Rp8.4 trillion) in contracts and marketing.
Epic Games has also raised the price of V-Bucks as the cost of operating the game continues to swell. Sweeney emphasized that these layoffs were not related to replacing developers with AI.
However, the global shortage of chips also affects consumer purchasing power. For employees who are affected, the company is committed to providing severance pay for four months or more, depending on their employment period.
Epic Games will also bear the cost of employee health insurance in the US for the next six months. This efficiency is expected to put the developer of the Gears of War series in a more stable economic position.
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