URGENT: Epic Games Cuts Over a Thousand Workers; Horizon Chase, Horizon Chase Turbo No Longer Available for Download

Key Takeaways

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Epic Games is laying off over 1,000 employees due to decreased player engagement with Fortnite and financial strains, aiming to save over $500 million.
Affected employees will receive a severance package that includes extended health coverage, accelerated stock options vesting, and an exercise period for those options.
Epic Games is undergoing a significant restructuring, with Horizon Chase and Horizon Chase Turbo no longer available for download starting June 1st, but Horizon Chase 2 remaining available.
Epics immediate priorities include creating exceptional experiences in Fortnite, accelerating development tools with Unreal Engine 6, launching the next generation of Epic, and navigating extreme market conditions towards a vibrant future.

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Epic Games is laying off over 1,000 employees, roughly 20% of its workforce, according to Bloomberg News. Citing a message sent to Epic employees, investigative journalist Jason Schreier reported that the cuts are due to decreased player engagement with Fortnite, expected to begin in 2025. The company aims to save over $500 million by scaling back on contracts and marketing, and by leaving certain positions open. Following the layoffs, Epic will have approximately 4,000 employees. In a memo to employees, CEO Tim Sweeney acknowledged the need for “drastic cuts to keep the company afloat,” stating, “I’m sorry we’re going through this again.” He attributed the financial strain to the fact that Epic’s spending significantly exceeds its earnings, despite Fortnite’s continued success. To support affected employees, Epic will provide a severance package including: At least four months of base salary, with additional amounts based on time of service. An extension of the company’s paid health plan (for example, six months of coverage in the US). Accelerated vesting of stock options until January 2027. An extended exercise period for those stock options of up to two years.

Epic Games will hold a company meeting on Thursday to discuss this roadmap in more detail. In related news, Horizon Chase and Horizon Chase Turbo will no longer be available for download starting June 1st, though Horizon Chase 2 will remain available. This decision comes as Epic Games is undergoing a significant restructuring. Sweeney also outlined the challenges facing Epic, some of which are common across the gaming industry: Slower growth Lower expenses Current consoles selling less than previous generations Games competing for players’ time against increasingly engaging entertainment options He stated that some challenges are specific to Epic, such as optimizing Fortnite for mobile devices and leading the way in technology advancements. Sweeney also clarified that the layoffs are not related to the company’s use of AI to improve productivity, emphasizing that Epic aims to maintain a high number of developers creating top-tier content and technology. Sweeney also detailed the company’s immediate priorities: Creating “incredible experiences” in Fortnite with unprecedented seasonal content, gameplay, storyline, and live events. Accelerating development tools with greater stability and capacity as Epic evolves from Unreal Engine 5 and UEFN to Unreal Engine 6.

Epic’s Next Generation: Navigating Extreme Market Conditions Towards a Vibrant Future

Launching the “next generation of Epic” with grand launch plans for the end of the year. Sweeney drew parallels to previous periods of restructuring, such as the transition from 2D to 3D using Unreal Engine 1 in the 1990s, the creation of console games like Gears of War in the 2000s, and the move to online gaming with Paragon and Fortnite in 2012. Sweeney emphasized that current market conditions are “the most extreme we’ve seen” since Epic’s early days. He expressed confidence in the company’s ability to emerge stronger and continue building a vibrant entertainment future.

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