This article discusses the recent tech layoffs and disappointing earnings in the tech industry, despite the US adding 517K jobs and reaching the lowest unemployment rate in 50 years. The author identifies four factors contributing to the tech recession: the COVID hangover, the hardware cycle, the end of zero interest rates, and the impact of Apple's App Tracking Transparency (ATT) initiative. The author argues that these factors have created a disconnect between the tech industry and the broader economy.
Epic Games, the maker of "Fortnite," is laying off 16% of its workforce and divesting from Bandcamp, citing lower margins in the creator content-driven growth of the game.
Epic Games faced backlash after laying off 900 employees and then re-releasing a microtransaction in Fortnite, causing criticism and anger among players and former employees.
UK games industry company Team17 is facing significant layoffs, particularly in its quality assurance department, while also seeing the departure of its CEO, Michael Pattison. This comes after concerns were raised about pay, working conditions, and management failures within the company.
Telltale Games, known for popular narrative-driven games like The Walking Dead, has laid off some of its staff due to current market conditions, adding to the growing list of video game industry layoffs this year.
Telltale Games has confirmed layoffs at the company due to market conditions but reassured that all ongoing projects, including The Wolf Among Us 2, are still in development.
Epic Games CEO Tim Sweeney admitted that the company's recent layoffs were a necessary survival move to stabilize their finances amid financial difficulties and ongoing legal battles, with the company heavily relying on Fortnite's revenue.
Telltale Games, the video game studio, has laid off employees due to current market conditions, but they are committed to supporting those impacted and continuing development on their ongoing projects. The layoffs are part of a trend of mass layoffs in the gaming industry, leading to increased discussions around unionization.
Stack Overflow has laid off 28 percent of its staff, including its go-to-market sales team, as it faces challenges from the AI coding boom.
The Epic Games Store has announced planned improvements including better search features, support for third-party subscriptions, and special publishing offers for developers to compete with Steam, while also facing layoffs and a shift in focus due to Fortnite's declining revenue.
Sony's Visual Arts Service Group, an internal division that supports game developers, has experienced layoffs, adding to the trend of job cuts in the games industry.
Sony Interactive Entertainment and PlayStation Studios are reportedly experiencing layoffs, which include staff at PlayStation's Visual Arts studio, as part of the ongoing mass job cuts in the games industry.
Video game developer Media Molecule has confirmed layoffs, with 20 staff being made redundant as part of a headcount reduction.
