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Epic Games lays off more than 1,000 employees as Fortnite engagement slows
Fortnite publisher Epic Games said Tuesday it is laying off 1,000 employees to save money as it grapples with industry-wide and company-specific challenges.
The Cary, North Carolina-based video game publisher said in a memo to employees that the job cuts are not related to artificial intelligence. Rather, they stem from industry-wide challenges such as slower growth, weaker spending and tougher cost economics. Games like Fortnite are also competing for people's attention against social media and other forms of online entertainment.
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In addition, Epic said it's had its own company-specific hurdles, for example, it is "only in the early stages of returning to mobile" after court battles with Apple and Google over app store payments.
Epic Games lays off 1,000 workers as its CEO says the cuts aren't tied to AI
Epic Games, the video game maker behind Fortnite, is laying off more than 1,000 workers amid "extreme" market conditions and a downturn in engagement with its most popular game, CEO Tim Sweeney said in a blog post Tuesday.
Its successful online video game Fortnite, which Epic developed in 2017, is now facing competition from "other increasingly-engaging forms of entertainment," Sweeney said.
Fortnite, which is available on multiple platforms such as the Nintendo Switch and Sony PlayStation, offers a battle-royale format where players compete to be the last one standing. But weaker consumer spending and sluggish demand for new video game consoles have made the job cuts necessary, Sweeney said.
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