Epic Games has announced a significant reduction in its workforce, laying off approximately 1,000 employees, which constitutes around 20% of its total staff. This decision follows a WARN notice filed with state regulators, detailing that 82 employees will be let go specifically from its Bellevue, Washington office.
CEO Tim Sweeney attributed the layoffs to decreased engagement with Fortnite, amidst challenges such as declining console sales and increased competition in the entertainment sector. He emphasized that these layoffs are not linked to advancements in AI technology. The company had previously reduced its Bellevue staff by 39 employees earlier this year.
As of now, Epic maintains 349 employees in the Seattle area, operating from Lincoln Square in downtown Bellevue. This strategic move is part of broader efforts to achieve over $500 million in cost savings through measures including cuts in contracting and marketing.
These layoffs come amid a trend of job reductions in the Seattle tech sector, with companies like Amazon and T-Mobile also implementing workforce cuts as they navigate economic uncertainties.