Epic Games CEO Tim Sweeney has confirmed 1000 staff have been laid off from the company, as part of aggressive cost-saving tactics introduced to combat a ‘downturn in Fortnite engagement’.
In a memo sent to employees, and later published online, Sweeney apologised that the company is ‘here again,’ following equally significant layoffs in 2023.
Per this memo, Fortnite has experienced a drop-off since 2025, leading to the company ‘spending significantly more than [it’s] making’ and reportedly requiring ‘major cuts to keep the company funded’.
‘This layoff, together with over US$500 million of identified cost savings in contracting, marketing and closing some open roles, puts us in a more stable place,’ Sweeney said.
Epic Games launches fresh layoffs – quick links
The challenges facing Epic Games and Fortnite
Despite it being one of the biggest titles on the planet, Sweeney stated that Fortnite is not immune to the current storm of challenges facing many games and game companies. He cited slower growth as a reason for the latest layoffs, as well as weaker spending, tougher cost economics, and games ‘competing for time against other increasingly-engaging forms of entertainment’.
He also cited issues unique to Fortnite, including ‘challenges delivering consistent Fortnite magic with every season’ and the company only being ‘in the early stages of returning to mobile’ after several protracted legal battles.
Notably, Epic Games recently won major lawsuits against Google and Apple, in an attempt to push back against mobile market monopolies.
‘In being the industry’s vanguard we have taken a lot of bullets in a battle which is only in the early days of paying off for ourselves and all developers,’ Sweeney said.
What’s next for Epic Games
The path ahead for Epic Games will rely on cost-savings – including raising the price of V-Bucks – and a smaller, tighter team working on new Fortnite content, gameplay, story and live events, aided by developer tools.
Sweeney has confirmed AI is not part of the layoffs, stating that while it can improve productivity to an extent, he wants to ‘have as many awesome developers developing great content and tech as [Epic] can’.
‘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,’ Sweeney said.
‘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.’
That future will come at the expense of the many talented developers now out of work, as the games industry – and the global jobs market – continues to shrink in the current economic downturn.
Sweeney has pledged to support those departing with a minimum four-month severance package, extended Epic-paid healthcare coverage, accelerated stock options, and other measures. While this may bridge a small gap, the reality is that those now out of work face a steep climb ahead.
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