> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said.

The chances this is accurate are extremely small. This is either anticipating AI coding goals, the CFO proved they were overloaded on developers, or they're just cutting to hit quarterly numbers.

I'd be sad if "quarterly numbers" is a reason for a privately held company with 40% controlling stake still held by Sweeney to lay off 1K folks.

As an indie dev, I generally like the guy's stance on shifting the PC gaming industry's support and financial incentive structures, so I'd be a bit surprised if he just did mass layoffs like Embracer and co.

That said, the article implies things that aren't necessarily canon: "cut jobs as Fortnite engagement falls" doesn't mean "cutting people because Fortnite is flagging". It's much more likely because the Epic Game Store struggles to push enough volume to recover the cost of developer acquisition on the platform.