Epic Games Announces Major Layoffs: Over a Thousand People to Lose Their Jobs

The reason was a decline in engagement in Fortnite.

Epic Games has announced plans to lay off more than one thousand people. The reason for this decision was a decline in engagement in Fortnite, which began back in 2025.

In an address to employees, the company's head, Tim Sweeney, noted that Epic is currently "spending significantly more than it earns", which is why it is forced to take serious measures to maintain financial stability. In addition to layoffs, the company plans to cut costs by more than $500 million through contracts and marketing, and also temporarily suspend hiring for a number of positions.

According to Sweeney, the problems are both industry-wide and internal. Factors include slowing market growth, declining consumer spending, and high competition for audience attention with other forms of entertainment. In addition, Epic acknowledged the difficulty in maintaining consistently high quality seasonal content in Fortnite and only the initial stage of returning the game to mobile devices.

Separately, the head of the company emphasized that the reductions are not related to the introduction of artificial intelligence. Despite the growing role of AI in the industry, Epic intends to continue to rely on developers and the creation of high-quality content.