According to a report by Bloomberg News on Thursday, the developer of “Fortnite,” Epic Games, will be laying off about 900 people, which represents 16% of its personnel.
The videogame industry is having trouble overcoming a spending slump because players are becoming more choosy in their selection of popular titles as a response to rising prices.
According to the story, which cited individuals with knowledge of the situation, the layoffs were communicated to the workers via an internal memo.
The representatives of Epic Games were not immediately available for comment.
Legacy videogame producers have also been competing for top rankings with new entries such as Warner Bros. Discovery, whose “Harry Potter”-based game “Hogwarts Legacy” has been a huge success.
Since 2020, Epic has been engaged in a legal dispute with Apple (AAPL.O). The dispute began when Epic claimed that Apple’s practice of collecting up to 30 percent commissions on in-app payments made on iPhones and other devices was in violation of U.S. antitrust regulations.
On Thursday, Apple filed a petition with the United States Supreme Court asking the court to overturn an order from the antitrust lawsuit that required revisions to the policies governing the App Store.