Epic lays off about 900 people, divests Bandcamp and SuperAwesome

Epic Games announced today that it is laying off 16% of its staff, or 830 people. It’s also divesting recent purchase Bandcamp and spinning out SuperAwesome, which will result in 250 more people leaving the company. Allegedly these layoffs are fueled by an excess of spending and Fortnite’s growth slowing down. Bandcamp joins Songtradr, while SuperAwesome will be its own company headed by current CEO Kate O’Loughlin.

Bloomberg’s Jason Schreier initially reported on rumors about the layoffs, and shortly afterwards Epic CEO Tim Sweeney shared a memo about the layoffs. In the memo, Sweeney mentions that the company has been spending more money than it earns. Sweeney said: “I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic.”