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Timmy ate more than he could chew. He tried to go up against Valve which has been a huge money sink trying to get all the exclusives for EGS. The theory was that if people simply used EGS, they would stick around and not bother with Valve. But that backfired very hard as all that did was waste 100s of millions of dollars with minimal user retention. Then they tried to go up against Apple which ended up with them getting cucked in court. Then with UE5, the engine has largely been a shit show thus far and the games that are coming out are flopping which means little to no revenue coming from game sales. And of course, Fortnite has been going down year over year if I remember correctly.

So now Timmy is at a point where he can no longer rely on the funds of Fortnite and Unreal Engine to fuel his projects. All his prospects have gone to shit and now he is firing people in the hopes that things will change. Somethings might get better like UE5 while other things will continue to go down like EGS and Fortnite. Hopefully he learned his lesson but I doubt it.



                  

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