Epic Games is laying off over 1,000 employees due to Fortnite underperformance

Epic Games has confirmed plans to cut more than 1,000 jobs across the company, citing a decline in Fortnite engagement and rising operating costs.

The details:

• In an internal memo shared publicly (via Bloomberg), CEO Tim Sweeney confirmed the cuts, stating that a “downturn in Fortnite engagement” led to the decision. “Today we’re laying off over 1000 Epic employees,” the executive wrote. “I’m sorry we’re here again. 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. This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles, puts us in a more stable place.”
• Staff affected by the restructuring will receive at least four months of base pay, with additional severance based on tenure, plus six months of paid healthcare coverage.
• This latest wave of cuts follows similar cuts in 2023, which saw 830 employees, then equating to 16% of its workforce, be let go for similar reasons. Epic also recently announced that it would be upping the price of Fortnite’s V-Bucks currency, again citing increasing costs to keep the game running.