Epic Games Agrees To Lay Off 16 Percent Of Employees Due To Financial Problems

Epic games phk employees (photo: Epic games)

JAKARTA - Epic Games announced on Thursday, September 18 that the company will lay off about 16 percent of its employees due to the company's economic problems.

Epic admits that currently, companies spend more money on investing and also developing Fortnite games, compared to their income.

"I've been optimistic for a long time that we can get through this transition without layoffs, but if we think about it, I see this as unrealistic," Epic wrote in his official statement.

Epic said it had made various ongoing efforts to reduce costs, including switching to net zero recruitment and cutting operational spending on things like marketing and events.

"But we are still far from financial sustainability. We conclude that layoffs are the only way, and that layoffs are currently and on a scale of this size will stabilize our finances," Epic explained.

However, the good news is that Epic has enough funds to support employees who have been laid off, by offering severance packages that include a six-month basic salary and in the US/Canada/Brazil Epic paid health services for six months.

The company also emphasized that Epic's future prospects are very strong. In fact, they say they have built the best machines in the world, and will host the Unreal Fest next week to unite the community and highlight the things they built with Unreal Engine and UEFN.

"We cut costs without stopping our core development or business line so we can continue to focus on our ambitious plans. About two-thirds of layoffs occur in teams beyond core development," he concluded.