Epic's Unreal Engine technology is used to develop video games. Kids Web Services, the parent verification and consent management toolset, will remain part of Epic as part of the reorganization. "While Fortnite is starting to grow again, the growth is driven primarily by creator content with significant revenue sharing, and this is a lower margin business than we had when Fortnite Battle Royale took off and began funding our expansion," Sweeney said in the email. "Success with the creator ecosystem is a great achievement, but it means a major structural change to our economics." Sweeney owns a majority of Epic Games shares, while China's Tencent Holdings Ltd. has a 40% stake. The company was valued at more than $30 billion last year. "We're cutting costs without breaking development or our core lines of businesses so we can continue to focus on our ambitious plans," said Sweeney. "About two-thirds of the layoffs were in teams outside of core development.