Epic Games is laying off 16% of its staff, eliminating roughly 870 jobs, according to a new report.

Epic Games, the maker of the popular Fortnite game, has been in the news extensively over its long legal battle with Apple, a battle it overwhelming lost. Bloomberg’s Jason Schreier was the first to report the layoffs on X:

This morning, rumors were flying as Epic disabled Slack for employees ahead of the news. Laid-off Epic employees will receive six months severance and health benefits. All-hands meeting happening shortly.

Jason Schreier (@jasonschreier) — September 27, 2023

CEO Tim Sweeney blamed unsustainable spending in a memo to employees, via Kotaku:

“For a while now, we’ve been spending way more money than we earn,” wrote Sweeney. “I have long been optimistic we could power through this transition without layoffs, but in retrospect I see that this was unrealistic.”