Game developer Epic is laying off 830 people, about sixteen percent of its workforce. The company is also liquidating Bandcamp. According to Epic, moving toward the transformational economy costs more money than it generates.

CEO Tim Sweeney writes In an email to employees It is laying off about sixteen percent of its employees. This concerns 830 employees, approximately one third of whom work as developers. Epic also says it will shut down the music store Bandcamp and the children’s developer platform SuperAwesome Kids Web Services, which Epic has shut down. He took over in 2020. 250 of the dismissed persons worked in these two departments.

Epic says the layoffs are necessary to reduce the company’s costs and expenses. That’s why CEO Sweeney also swore that current layoffs would remain in place. Epic says it will continue to file lawsuits against Apple and Google. These lawsuits have been going on for many years and have also cost the company a lot of money. Although Epic says it is trying to reduce these costs, it continues to file lawsuits.

According to Epic, one important reason lies in the overhead costs incurred by the company. Epic is now trying to turn Fortnite into a Metaverse ecosystem for “creators,” rather than just a battle royale game. “I have long been optimistic that we could get through this transition without layoffs, but in retrospect that was not realistic,” Sweeney said.

“Although Fortnite is growing again, this growth is primarily driven Content Creator “It requires a lot of profit sharing,” Sweeney added. This means that Epic’s profit margins are smaller and it can no longer support its entire workforce. “Success in the creator ecosystem is a great achievement, but it means major structural change in our economy.” Sweeney says.