Tim Sweeney Claims Epic Is ‘Financially Sound’ After 830 Layoffs

Epic Games' CEO Tim Sweeney announced that the company is now “financially sound” following a major restructuring that saw 830 employees laid off last year. This significant workforce reduction, approximately 16% of Epic's workforce, was part of a larger effort to realign the company's financial strategies after a period of overspending on projects like Fortnite and its metaverse ecosystem. After divesting from Bandcamp and most of SuperAwesome, as well as shifting business focus, Epic has seen a resurgence in success. Fortnite reached 110 million monthly active users, while the Epic Games Store hit 70 million active users, showcasing both platforms' ongoing popularity despite previous financial struggles.

After undergoing significant layoffs and restructuring, Epic Games has reported that it is financially sound, with Fortnite achieving 110 million monthly active users and the Epic Games Store reaching 70 million active users.

Founded in 1991, Epic Games is renowned for its development of the Unreal Engine and iconic games like Gears of War. However, it has gained immense popularity with Fortnite, a free-to-play battle royale game that has proven to be incredibly lucrative, generating around $9 billion by 2021. Additionally, Epic's ongoing legal battles concerning app store regulations with Apple and Google have been costly but may eventually reshape the competitive landscape of mobile gaming.