Epic Video games lays off 16% of workforce, Rocket League esports majorly affected

epic games logo on black background
Picture credit score: Epic Video games

Online game and software program developer Epic Video games has laid off 16% of its workforce, the corporate introduced in an inside email despatched to staff on Thursday. 

The layoffs span lots of the firm’s divisions however seem to incorporate main cuts to employees engaged on Rocket League esports. Epic Video games purchased Rocket League developer Psyonix in 2019.

ESI London 2023

Jake Friedman, previously an Esports Product Supervisor at Epic Video games, was among the many outstanding names in Rocket League’s esports scene which have been affected by the layoffs.

In a post on X, Friedman stated: “I’m proud to say I’ve had a hand in Rocket League Esports spanning again to RLCS Season 4 as an Open Qualifier Match Admin, main as much as immediately as an Esports Product Supervisor. However, together with many different superb of us at Epic Video games, I used to be laid off immediately.”

In replies to his publish on social media, Epic Video games staff, former colleagues, broadcast expertise {and professional} gamers alike poured in to thank him for his contribution to Rocket League esports. “Jake [Friedman] IS Rocket League Esports,” wrote Murty Shah, present Product Supervisor Rocket League at Epic Video games.

Chloe Jones, former Esports Content material Specialist for Epic Video games, who labored on social media, content material and expertise administration for Rocket League, additionally introduced she was affected by the layoffs.

“To say I’m heartbroken and shocked is an understatement,” she stated in a comment on Reddit. “Rocket League Esports has been my dwelling since school, the place I labored on it as a scholar chief in CRL. Though I don’t know what’s subsequent for me, I do know that I really like this esport and the group behind it. I gained’t be a stranger to the RLCS it doesn’t matter what.”

Esports Insider couldn’t instantly confirm the variety of folks on the Rocket League Esports staff that have been affected. Nevertheless, a former Rocket League Esports Program Supervisor not affected by the layoffs claimed in a post on X that solely three staff have been left on the Rocket League Esports staff.

Matthias Dean, a regional supervisor for Rocket League’s North America circuit, additionally posted on X after the layoffs that whereas he hadn’t misplaced his job, “virtually everybody that I work with has throughout the final month misplaced theirs.”

Rocket League Esports arena
Rocket League has been rising as an esport, breaking a record for peak viewership in August. Picture credit score: Psyonix / Rocket League Esports

Within the inside electronic mail, CEO Tim Sweeney stated the layoffs have been the results of the corporate spending more cash than it earns.

“Whereas Fortnite is beginning to develop once more, the expansion is pushed primarily by creator content material with vital income sharing, and this can be a decrease margin enterprise than we had when Fortnite Battle Royale took off and commenced funding our enlargement. Success with the creator ecosystem is a superb achievement, but it surely means a serious structural change to our economics.”

Sweeney added that conducting layoffs now would stabilise the gaming big’s funds. “Epic of us world wide have been making ongoing efforts to scale back prices… However we nonetheless ended up far wanting monetary sustainability,” the e-mail learn.

Affected staff will obtain six months’ severance pay amongst different advantages, per the e-mail. Epic Video games additionally revealed it had offered audio distribution platform Bandcamp, and would spin off ‘most of’ youth advertising and marketing firm SuperAwesome.

Jake is Esports Insider’s Options and Trending Information Editor. A part of the ESI staff since early 2021, he’s fascinated with politics, training and sustainability in esports.

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Author: Ronnie Neal