Epic Games has announced plans to lay off more than 1,000 employees, representing about 20% of its workforce, as the company grapples with a downturn in engagement with its flagship title, Fortnite. The cuts are part of a broader cost-cutting initiative aimed at saving $500 million.
In a memo to staff, CEO Tim Sweeney cited the decline in Fortnite engagement that began in 2025 as the primary reason for the layoffs. “We’re spending significantly more than we’re making, and we have to make major cuts to keep the company funded,” he wrote. The layoffs, combined with cost savings in contracting, marketing, and closing some open roles, are intended to stabilise the company.
Sweeney also noted industry-wide challenges, including slower growth, weaker consumer spending, and tougher cost economics. He pointed to current-generation consoles selling less than their predecessors and increased competition from other forms of entertainment.
The layoffs come after Epic Games reduced its workforce by 830 jobs in September 2023. In February 2024, Disney invested $1.5 billion in Epic Games, taking a minority stake in the company. Following the latest cuts, Epic’s headcount stands at just over 4,000 employees.
