Epic Games Lays Off 1,000 Workers Amid Fortnite Downturn
Epic Games has just announced a round of layoffs in an effort to save costs following a downturn in engagement on Fortnite. A recent post to the Epic Games news page explains that "The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making, and we have to make major cuts to keep the company funded," and Epic says that the layoffs are part of company-wide cost-cutting measures that aim to reduce expenses by over $500 million in order to stabilize the company's finances. These other cost-savings measures will affect contracting, marketing, and hiring at the company, and any staff affected by the layoffs will receive severance packages of at least four months of base pay—with that amount increasing depending on tenure at the company.
The Epic layoffs will affect 1,000 workers, and Epic seems to blame both industry-wide challenged and its reliance on Fortnite as its major cash cow for its financial troubles, with Epic CEO, Tim Sweeney emphasizing that "the layoffs aren't related to AI," and explaining that Epic wants "as many awesome developers developing great content and tech as we can." He also goes on to say that Epic has struggled to deliver "Fortnite magic with every season," and noting that the game is in its early stages of returning to mobile platforms, but that the goal going forward will be to focus on "fresh seasonal content, gameplay, story, and live events," while focusing on Fortnite's user-generated content and on upgrading from Unreal Engine 5 to Unreal Engine 6. The full statement regarding Epic's layoffs follows.
The Epic layoffs will affect 1,000 workers, and Epic seems to blame both industry-wide challenged and its reliance on Fortnite as its major cash cow for its financial troubles, with Epic CEO, Tim Sweeney emphasizing that "the layoffs aren't related to AI," and explaining that Epic wants "as many awesome developers developing great content and tech as we can." He also goes on to say that Epic has struggled to deliver "Fortnite magic with every season," and noting that the game is in its early stages of returning to mobile platforms, but that the goal going forward will be to focus on "fresh seasonal content, gameplay, story, and live events," while focusing on Fortnite's user-generated content and on upgrading from Unreal Engine 5 to Unreal Engine 6. The full statement regarding Epic's layoffs follows.



















































































































































































































































































































































































































































































































































































































































































































































































































