According to CoinDesk, video game developer Epic Games is laying off approximately 16% of its employees, affecting 830 individuals, as the company transitions its popular online game Fortnite towards a metaverse-inspired ecosystem. CEO Tim Sweeney announced the layoffs in an email to employees on Thursday.
Epic Games has been focusing on growing Fortnite as a metaverse-inspired ecosystem for creators, with the game's growth now primarily driven by creator content. This shift has resulted in lower revenue for the company, as the revenue is more distributed among creators. Sweeney admitted that he had been optimistic about avoiding layoffs during the transition, but now recognizes that this was unrealistic.
The metaverse is a concept for a digital world where the internet becomes an immersive virtual environment that can be used for work, play, socializing, and events. While still in its early stages of development, Epic Games' announcement suggests that major video game developers are making strides to harness the potential of the metaverse.