Epic Games CEO Tim Sweeney speaks onstage during Samsung Unpacked New York City at the Barclays Center in Brooklyn, New York, on Aug. 9, 2018.
Mike Coppola | Getty Images Entertainment | Getty Images
Epic Games announced on Thursday that it will be reducing its workforce by 16%, selling its music platform Bandcamp, and spinning off most of its SuperAwesome services.
In a memo shared on its website, CEO Tim Sweeney stated that around two-thirds of the approximately 830 job cuts will be outside of core development, allowing the company to reduce costs without impacting its major plans. Sweeney mentioned that Epic Games, known for developing and publishing video games like Fortnite, has been working on cutting spending in areas such as marketing and events, but has now concluded that layoffs are necessary for financial stability.
Sweeney also revealed that Epic Games will be selling its music platform Bandcamp, acquired last year, to Songtradr, a music licensing platform.
Songtradr stated separately that it will continue operating Bandcamp as a marketplace and music community with an artist-first revenue share.
In addition, Sweeney announced that Epic’s advertising business for SuperAwesome, which offers kid-friendly services, will become an independent company under the SuperAwesome brand.
The layoffs at Epic Games are part of a larger trend of job cuts in the tech industry, which has experienced slowing growth and higher interest rates since early last year.
Epic Games is a privately held company, with China’s Tencent holding a significant minority stake. The company was valued at over $30 billion in 2022.
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