Epic Games is cutting more than 1000 jobs, making it one of the largest layoffs in gaming history. The decision comes after its most-talked-about game, Fortnite, recently lost major player interest. The company faces increasing expenses, which continues the trend of job reductions that we see throughout the gaming sector. The company has been struggling with industry-wide challenges as well as problems that are unique to Epic.
Tim Sweeney apologised for the job cut to employees. “Today we’re laying off over 1,000 Epic employees,” CEO Tim Sweeney said in a note. “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.” He added, “This layoff, along with over $500 million in identified cost savings from contracting and closing some open roles, puts us in a more stable place.”
Blockbuster games like Fortnite managed to stay resilient even after the pandemic took a toll on the gaming industry. However, engagement is now declining, especially for live-service games that depend on frequent content updates to retain users. Sweeney explained two reasons for this. He said, “First, the whole gaming industry is under pressure. Second, some issues are specific to Epic. Despite Fortnite still being a global hit, we’ve struggled to deliver consistent Fortnite magic each season.”
The company is still committed to supporting everyone impacted by this layoff. He quoted, “Employees will get at least four months of base pay as severance. Healthcare coverage will be extended and US employees will receive six months of paid healthcare. Stock options will vest faster, giving employees more control over their shares and they’ll have up to two years to exercise them instead of the usual 90 days.” He clarifies that these layoffs aren’t related to AI.
Despite the layoffs, Epic Games is keeping its eyes firmly on the future of Fortnite. “We’re not slowing down,” CEO Tim Sweeney said. “We’ll deliver exciting seasonal content, enhance our tools and get ready for major launches later this year.” Fortnite remains a top priority for the company, promising that the team is determined to keep pushing the boundaries of what the game can be," he added.