Epic Games cuts 1,000 jobs as Fortnite slowdown forces major reset

• Fortnite engagement declined in 2025, forcing Epic to cut costs after spending began to outpace revenue.
• The layoffs are part of a broader restructuring plan targeting more than $500m in savings across operations.
• Epic said the cuts reflect both company-specific challenges and wider industry pressures around growth and spending.

Epic Games has laid off more than 1,000 employees as part of a major cost-cutting effort following a decline in engagement for its flagship title Fortnite.

In a message to staff, the company said the downturn in Fortnite engagement that began in 2025 left it spending significantly more than it was generating.

“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," Epic CEO Tim Sweeney said in a post.

Epic said the pressures reflect broader industry headwinds, including slower growth, reduced consumer spending, and rising development costs, as well as declining console sales compared with the previous generation. 

“And some of our challenges are unique to Epic. Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season."

Market conditions 

The company also acknowledged internal challenges, noting difficulties in maintaining consistent player excitement across Fortnite seasons and the early stage of its renewed push into mobile platforms.

Sweeney stressed that the layoffs were not related to artificial intelligence adoption, stating the company intends to continue investing in development talent and new technology.

“Market conditions today are the most extreme we've seen since those early days, with massive upheaval in the industry accompanied by massive opportunity for the companies that come out as winners on the other side," said Sweeney.

“That's what we're aiming to do for our players, and we aim to bring other like-minded developers in the industry along on the journey to build an increasingly open and vibrant future of entertainment together."

Looking ahead, Epic said its immediate priorities include delivering stronger seasonal content and live events for Fortnite while advancing its technology roadmap toward the next iteration of its game engine. 

The company added that affected employees will receive severance packages of at least four months’ base pay, extended healthcare coverage, and accelerated stock option vesting through January 2027.

Elsewhere, Epic Games recently secured Fortnite’s return to the Google Play Store on March 19, a date that also coincided with a price increase for V-Bucks, which Epic said reflects the rising costs of running the game.