Epic Video games will lay off round 830 workers, or 16% of jobs on the firm. The Fortnite maker says it has no plans for additional cuts and cites slimmer margins from its shared income as a part of the choice.

The report first got here from Bloomberg Information reporter Jason Schreier, who mentioned Epic Video games would lay off workers. Bloomberg’s supply mentioned the announcement got here from Epic Video games by an inner memo. Schreier’s follow-up put up acknowledged Epic reduce Slack entry to affected workers forward of the information breaking internally.

Epic Video games has since confirmed its sweeping layoffs. In an official assertion, Epic shared CEO Tim Sweeney’s e-mail to workers saying layoffs for round 16% of its workforce. It would additionally divest in Bandcamp, which it acquired in 2022, and most of SuperAwesome. It estimates round 250 jobs from these layoffs are cuts from each firms.

“For some time now, we’ve been spending far more cash than we earn, investing within the subsequent evolution of Epic and rising Fortnite as a metaverse-inspired ecosystem for creators,” wrote Sweeney in his e-mail to Epic workers. “I had lengthy been optimistic that we may energy by this transition with out layoffs, however on reflection I see that this was unrealistic.”

The Fortnite maker will provide six months base pay and healthcare for workers within the US, Canada, and Brazil. In its FAQ concerning layoffs, Epic additionally claims there is not going to be extra layoffs and that it continues to rent for “important roles, whereas sustaining a net-zero at our [Epic Games] new dimension.” Epic plans to carry a follow-up firm assembly later in October to debate its new route.

The corporate cites working at decrease margins as a cause for the cuts, and whereas it claims “Fortnite is beginning to develop once more,” that development is “pushed primarily by creator content material with vital income sharing.”

Epic Video games joins different trade giants in a spree of mass video games trade layoffs. Simply throughout the final 12 months, Embracer Group introduced its restructuring plan, which led to cuts on the Tomb Raider studio, Crystal Dynamics. BioWare additionally eradicated “roughly 50 roles” in latest layoffs, whereas Firaxis Video games used the identical ‘trimming up’ reasoning to chop some 30 jobs.

Destructoid reached out to Epic Video games for remark however didn’t obtain an instantaneous reply.