Epic is laying off more than 1,000 workers, citing a downturn in Fortnite engagement

Epic Games is laying off more than 1,000 employees after a sharp decline in Fortnite engagement throughout 2025. CEO Tim Sweeney told staff the company is “spending significantly more than we’re making,” even after identifying over $500 million in cost reductions. The layoffs follow earlier cuts in 2023 and could represent roughly a quarter of Epic’s workforce. Alongside the restructuring, Epic is shutting down three Fortnite modes — Rocket Racing, Ballistic, and Festival Battle Stage — due to low player retention. Sweeney emphasized the layoffs are not related to AI and outlined a renewed focus on delivering stronger seasonal Fortnite content and accelerating development toward Unreal Engine 6. Affected employees will receive at least four months of pay, extended healthcare, and accelerated stock vesting.

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