Epic Games is the latest major game studio to enact a round of layoffs. The same day that Sega announced major cuts at Creative Assembly, Epic Games has confirmed it's laying off about 16% of its workforce, which amounts to around 870 people. Additionally, Epic is divesting the audio platform Bandcamp and spinning off "most" of its SuperAwesome team.

250 are leaving via Epic's divestures of Bandcamp and SuperAwesome. Epic confirmed these changes after announcing V-Bucks price increases. Epic's Mediatonic studio, which created and runs the whimsical battle royale game Fall Guys, was impacted by the cuts, too.

"For a while now, we've been spending way more money than we earn, investing in the next evolution of Epic and growing Fortnite as a metaverse-inspired ecosystem for creators. I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic," CEO and founder Tim Sweeney said in a memo to staff and shared on Epic's website.