The Fortnite maker is laying off more than 1,000 employees, citing declining engagement
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The Fortnite craze may have reached its crescendo.
Epic Games announced the layoff of 1,000 employees on Tuesday, citing a decline in Fortnite engagement.
“We’ve had challenges delivering consistent Fortnite magic season after season,” CEO Tim Sweeney admitted to staff.
“Today we are laying off over 1,000 Epic employees,” the memo began. “I’m sorry we’re here again. The decline in Fortnite engagement that started in 2025 means we’re spending more than we’re making, and we have to make big cuts to keep the company funded.”
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Epic Games CEO Tim Sweeney announced 1,000 layoffs, citing declining engagement in the video game title that once plagued Fortnite. (SeongJoon Cho/Bloomberg)
Sweeney’s memo also noted several weaknesses in the video game industry that weighed on the company’s finances.
The cuts, along with more than $500 million in savings from lower contract and marketing costs and unfilled roles, will put the company in a “stable place,” according to Sweeney.
The cuts are the latest in the sports sector, where companies have faced weak growth as consumers have held on to proven titles amid economic uncertainty.
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But even those, especially live service games, which rely on a constant stream of new content to keep players engaged, are now showing signs of cracking.
“Market conditions today are far more extreme” than the company’s early days in 1991, Sweeney wrote, adding “the layoffs are not related to AI.”
The move marks Epic’s second major round of layoffs in three years. In September 2023, the company cut about 830 jobs, or about 16% of its workforce.
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Real estate developers are using the same technology that created video games like Fortnite to offer life-like tours and promote pre-construction sales. (Getty Images; Image credit)
The sports sector has faced increasing pressure. In September, Electronic Arts laid off hundreds of employees and canceled the Titanfall game that was still in development at its Respawn Entertainment division, according to media reports. Amazon’s extensive job cuts late last year also affected its gaming division.
“Some of the challenges we face are industry-wide: slow growth, low spending, and difficult cost economics; current consoles are selling less than the last generation; and games competing for time with other growing forms of entertainment,” Sweeney wrote. “And some of our challenges are unique to Epic.
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“Despite the fact that Fortnite remains one of the most successful games in the world, we have had challenges to deliver the magic of Fortnite consistently; we are in the early stages of returning to mobile and making Fortnite better for billions of smartphones worldwide; and being the leading player in the industry we have taken many bullets in the battle that we only pay for in the early days and it pays off.”
The laid-off workers at Epic Games will receive “at least four months’ base pay” and “expanded paid health care,” according to the memo.
