Addressing Recent Layoffs and Financial Stability
Sweeney briefly addressed the recent layoffs at Epic Games, which saw a reduction of 16 percent of the workforce. He characterized these layoffs as a necessary move for the company’s survival, citing recent financial difficulties that emerged approximately 10 weeks prior to the announcement. Despite the challenges, Sweeney expressed confidence that these actions have stabilized Epic’s finances and positioned the company on a solid footing for its ambitious goals, including the construction of the metaverse. Epic has been actively involved in partnerships with Meta, Microsoft, and others to establish metaverse standards.
Sweeney explained that Fortnite’s substantial revenue had supported various facets of the company, which had led to some segments becoming disconnected from their revenue streams. He noted that the dependence on Fortnite’s success had led to certain imbalances within Epic’s business structure.
