Epic Games is making significant layoffs, and Fall Guys developer Mediatonic is one of the studios most affected. Reports indicate that Mediatonic has been severely impacted by these cuts, with employees describing the situation as a “decimation.” While there are rumors that the entire London studio has been closed, no official confirmation has been given. However, an Epic spokesperson has denied reports of a complete shutdown and stated that they will continue to invest in Fall Guys.
Epic Games announced that they are laying off around 830 employees, which accounts for 16% of their workforce. This decision comes as part of the company’s efforts to reduce costs and focus on core development. Mediatonic, which was acquired by Epic in March 2021, had 287 employees listed on LinkedIn prior to the layoffs.
Epic CEO Tim Sweeney acknowledged that the layoffs are a difficult experience for everyone involved. He explained that the company had been spending more money than it earned and that he had hoped to avoid layoffs. However, he now recognizes that this was unrealistic. Sweeney also mentioned that Epic is willing to potentially understaff some teams in order to remain profitable and become a leading metaverse company.
Impacted employees will receive a severance package that includes six months of base pay, as well as additional healthcare and benefits. Despite the layoffs, Fall Guys is not currently in danger of being discontinued, as Epic plans to continue investing in the game.
This is not the first instance of major layoffs in the gaming industry, with other companies like Embracer Group and Sega also undergoing restructuring. The impact of these layoffs on the industry as a whole is yet to be seen.
Source: DOTESPORTS
