Epic Games is facing several setbacks, including a decline in Fortnite’s popularity, an unfavorable legal outcome in its battle with Apple, and challenges with the Epic Games Store. In response, the company has decided to downsize its workforce by laying off approximately 870 employees, which accounts for 16% of its total workforce.

Additionally, Epic Games plans to divest itself of Bandcamp, an online music distribution platform it acquired last year. The company also intends to sell a significant portion of SuperAwesome, a firm specializing in child-safe technology.

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In a message to Epic Games employees, CEO Tim Sweeney explained that the company had exceeded its earnings and was taking these measures to sustain its growth. Sweeney emphasized that while the company had tried to reduce operational costs, staff reductions had become necessary to ensure financial viability.

The decision to sell Bandcamp and a significant portion of SuperAwesome is part of Epic Games’ strategy to improve its financial position. Bandcamp will join the music market company Songtradr, while SuperAwesome’s advertising division will continue to operate independently.