(Reuters) – “Fortnite” maker Epic Games is set to lay off approximately 900 employees, which accounts for about 16% of its workforce, as reported by Bloomberg News on Thursday.
According to the report, the job cuts were communicated through a memo to the company’s staff and were confirmed by sources familiar with the matter.
Epic Games has been embroiled in a legal dispute with Apple since 2020, when the gaming company alleged that Apple’s practice of imposing commissions of up to 30% on in-app purchases made on iPhones and other devices violated U.S. antitrust regulations.
In response, Apple has appealed to the U.S. Supreme Court, requesting the nullification of an order mandating changes to its App Store policies, which was issued as a result of an antitrust case filed by “Fortnite” creator Epic Games.
The layoffs come as a significant blow to Epic Games, which has been one of the major players in the gaming industry. The company is celebrated for its popular titles, such as “Fortnite” and “Gears of War,” and was valued at $29 billion in a funding round last year.
Although Epic Games has experienced ongoing success with its games and digital storefront, the legal battle with Apple has put immense strain on the company. It has faced financial pressure and has had to make difficult decisions, such as downsizing its workforce in order to stay afloat.
The layoffs are expected to impact various departments within the organization. Epic Games is headquartered in Cary, North Carolina, and employs approximately 5,600 people worldwide.
The company has not provided any further details about the specific areas or regions that will be affected by the job cuts.
This news comes amidst a period of uncertainty and challenges for the gaming industry, as companies navigate the evolving landscape of regulations and competition.
By Chavi Mehta and Samrhitha Arunasalam in Bengaluru; Editing by Arun Koyyur
Credit: The Star : Tech Feed
