Epic Games, a prominent player in the gaming industry, has recently made significant changes to its organization to streamline costs. The company has laid off approximately 900 employees, representing a 16% reduction in its workforce. Additionally, Epic Games has divested Bandcamp and spun out SuperAwesome, resulting in more individuals departing from the company. The decision to downsize was driven by increased spending and a slowdown in the growth of their popular game, Fortnite.

Bandcamp, a recent acquisition of Epic Games, will now be joined with Songtradr, while SuperAwesome will function as an independent business led by its current CEO, Kate O’Loughlin. This strategic restructuring aims to stabilize Epic Games' finances amidst the evolving gaming landscape.

Although the company has undertaken various cost-cutting measures, the management acknowledges that layoffs are essential at this time. To support affected employees, Epic Games plans to provide six months' salary and healthcare benefits as severance packages.

Despite these changes, Epic Games remains committed to recruiting for critical roles. The company recognizes the transformative potential of the creator ecosystem and its impact on their economic model.

This announcement comes as Epic Games continues to navigate the dynamic gaming industry and prioritize long-term financial stability.