In the year 2022, the cryptocurrency industry underwent a significant shake-up, with a total of 4,695 job layoffs reported throughout the year. This placed the cryptocurrency sector among the top 10 tech industry layoffs during the period. In parallel, Epic Games, the renowned creator of Fortnite, made headlines by announcing a workforce reduction of 16%, affecting approximately 830 employees.
Epic Games’ decision to downsize its workforce came as a response to financial challenges stemming from unrealized revenue expectations in the metaverse. The broader context of difficulties faced by the Web 3.0 sector played a substantial role in this decision, as many companies found themselves spending more than they were earning.
In a note to Epic Games’ staff, CEO Tim Sweeney recognized that while he had initially hoped to navigate this transition without layoffs, it has proven to be an unrealistic goal. Sweeney credited some recent growth to the Fortnite Creator program, which allows players to create and sell in-game content. However, this shift has also resulted in lower profit margins.
In addition to the layoffs, Epic Games is parting ways with 250 more employees. They are also selling Bandcamp, a recently acquired American online audio distribution platform, and spinning off SuperAwesome, a child-safety tech firm that joined Epic in 2020.
Notably, departing employees will receive six months of pay, and those in the United States, Canada, and Brazil will continue to have six months of paid healthcare coverage.
Besides Fortnite, which boasts approximately 400 million registered users, Epic Games is also known for its Unreal Engine, a video game development suite that powers popular titles like God of War and PlayerUnknown’s Battlegrounds.
Earlier, as reported by Todayq News, multiple cryptocurrency exchanges reduced their employee counts, including CoinDCX, CoinSwitch, and others.
Due to the prolonged bear market, CoinDCX India’s leading cryptocurrency exchange, reduced its personnel by 12%, letting go of 71 staff members. Another Indian cryptocurrency exchange, CoinSwitch, reduced its customer support team by one-third, cutting 44 jobs, or about 7% of its total workforce, due to declining revenues.