Video game developer Epic Games is laying off around 16% of its employees following a metaverse-inspired transition of its popular online game Fortnite.
The layoffs affect 830 of Epic Games' employees, CEO Tim Sweeney said in an email to employees on Thursday.
Epic Games has been "growing Fortnite as a metaverse-inspired ecosystem for creators," according to Sweeney. The game's growth is now primarily driven by creator content, meaning lower revenue for Epic as the revenue is more distributed.
"I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic," Sweeney added.
The metaverse is a concept for a digital world where the internet theoretically becomes an immersive virtual environment that can be used for work, play, socializing, and events. While it remains in its very early stages of advancement, Epic Games' announcement suggest that major video game developers have been making strides to harness it.
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