Initially, he had been optimistic that they could navigate this transition without resorting to layoffs; however, in hindsight, he acknowledges that such optimism was unrealistic. Although Fortnite is experiencing growth again it is primarily driven by creator-generated content with revenue sharing involved. This particular aspect of their business yields lower profit margins compared to when Fortnite Battle Royale took off and funded their expansion efforts. While achieving success with their creator ecosystem is commendable it necessitates structural changes, to their overall economic model.
The initial intention was for the company to brave this phase without the need to layoff employees, but now, Sweeney concedes that this was a case of over optimism, and that the layoffs, though painful, have given the company a new lease to life. Fortnite seems to be finding its feet again with some fresh collaborations, and the company hopes that this will spearhead the comeback for Epic Games.
