Key Takeaways
- Epic Games is eliminating 1,000 positions following decreased Fortnite player activity beginning in 2025.
- CEO Tim Sweeney acknowledges the company’s expenditures are “significantly more than we’re making.”
- The gaming giant has pinpointed $500 million in potential cost reductions through contracting and marketing adjustments.
- Sweeney explicitly stated the workforce reduction is unrelated to artificial intelligence implementation.
- The company previously eliminated 830 positions in September 2023, making this the second substantial workforce reduction.
Epic Games has revealed plans to terminate more than 1,000 staff members. The announcement came Tuesday from CEO Tim Sweeney, who attributed the decision to a “downturn in Fortnite engagement that started in 2025.”
Epic Games has laid off over 1,000 employees & announced that 3 Fortnite modes will be going offline permanently.
Rocket Racing – October
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Festival Battle Stage – April 16 pic.twitter.com/EjYSI43ZO8— DiscussingFilm (@DiscussingFilm) March 24, 2026
In a memo posted to Epic’s official website, Sweeney delivered a stark assessment: the organization is “spending significantly more than we’re making.” It’s the kind of admission that leaves little room for interpretation.
The workforce reduction represents one component of a broader restructuring initiative. According to Epic, the company has also uncovered $500 million worth of potential savings by scaling back contractor relationships and marketing expenditures, while simultaneously freezing certain vacant positions.
Sweeney outlined both macro and micro-level challenges facing the organization. From an industry perspective, he referenced decelerated growth patterns, diminished consumer purchasing power, and intensified competition for audience attention across the entertainment landscape.
He additionally noted declining console hardware sales as a complicating factor. The gaming industry no longer operates in isolation from other entertainment mediums.
Regarding Epic-specific obstacles, Sweeney admitted the difficulty of maintaining “consistent Fortnite magic with every season” — a creative challenge that has evidently strained company resources.
Fortnite’s return to Apple’s US App Store occurred in 2025, marking the end of a nearly five-year absence following Apple’s removal of the game during a payment processing controversy. While the mobile platform restoration was expected to drive user growth, engagement metrics have continued their downward trajectory.
Prior to announcing the layoffs, Epic increased pricing for Fortnite’s virtual currency V-Bucks, justifying the decision by referencing elevated operational expenses. Company representatives characterized the price adjustment as necessary to “pay the bills.”
Second Round of Significant Cuts
This workforce reduction marks familiar terrain for Epic. During September 2023, the organization eliminated 830 positions — approximately 16% of total staff — while citing comparable financial pressures. Sweeney referenced this history in his employee communication: “I’m sorry we’re here again.”
The announcement arrives during a challenging period across the gaming industry. Electronic Arts revealed workforce reductions within its Battlefield development teams during early March, framing the decision as necessary to “better align” organizational resources.
Future Plans
Sweeney’s letter also addressed the company’s forward trajectory. Epic confirmed continued development of Unreal Engine 6 and teased a “huge launch later this year” intended to inaugurate what he described as the next generation of Epic Games.
The specific nature of this launch — whether referring to Unreal Engine 6 or an entirely new gaming title — remains ambiguous.
Sweeney provided explicit clarification on one topic: these layoffs bear no connection to artificial intelligence. “Since it’s a thing now, I should note that the layoffs aren’t related to AI,” he stated.
Epic Games maintains its status as a privately held entity and does not trade on public stock exchanges.
