Epic Games cuts over 1,000 jobs as Fortnite engagement declines

Epic Games, the company behind Fortnite, is cutting more than 1,000 jobs as it faces what CEO Tim Sweeney described as "extreme" market pressures and declining player engagement with its flagship title. "Today we're laying off over 1000 Epic employees," Sweeney said in a memo to staff.

Fortnite downturn

Fortnite, launched in 2017 and available on platforms including Nintendo Switch and PlayStation, features a battle royale mode where players compete to be the last survivor. "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," he said.

Industry-wide challenges

Sweeney added that reduced consumer spending and slow demand for new gaming consoles have made workforce reductions unavoidable. "Some of the challenges we're facing are industry-wide challenges: slower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation's; and games competing for time against other increasingly-engaging forms of entertainment."

AI not the driver

Referring to artificial intelligence, Sweeney said the layoffs were not driven by AI, noting that while the technology may improve productivity, the company "still wants to keep as many talented developers as possible focused on building strong content and technology."

Severance and savings

Epic Games said more than $500 million in savings has been identified to help steady the company. Affected employees will receive at least four months of base pay and, in the US, six months of health coverage.