Tim Sweeney
Epic Games lays off over 1,000 employees due to Fortnite downturn
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Epic Games announced layoffs affecting more than 1,000 employees on March 24, citing a downturn in Fortnite engagement that has led to spending exceeding revenue. CEO Tim Sweeney expressed regret in a blog post, noting the cuts along with over $500 million in other cost savings will stabilize the company. Affected staff will receive severance packages including at least four months of base pay and extended healthcare.
Epic Games CEO Tim Sweeney publicly apologized and pledged to resolve insurance issues for Mike Prinke, a veteran programmer laid off in mass cuts with terminal brain cancer. The response followed a viral Facebook post by Prinke's wife, Jenni Griffin, detailing their family's hardships after the March 24 layoffs affecting over 1,000 employees.
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Chet Faliszek, a prolific former writer at Valve, has publicly criticized Epic Games founder Tim Sweeney over recent layoffs of more than 1,000 staff. Faliszek questioned why employees should work hard at the company, pointing to the absence of shareholder pressure and the shutdown of several Fortnite modes. He contrasted Epic's approach with Valve's emphasis on employee agency.