Epic Games cuts 1,000 jobs, says Fortnite engagement has declined

Epic Games will lay off 1,000 employees on Tuesday, according to a company memo posted on Epic’s website Blog.

“The decline in Fortnite engagement that began in 2025 means we are spending much more than we make, and we must make significant cuts to keep the company funded,” Epic Games CEO Tim Sweeney wrote in the memo. “This layoff, combined with over $500 million in cost savings identified in contracting, marketing and closing some open roles, positions us in a more stable place.”

Last week, also epic The price increased of V-Bucks, Fortnite’s in-game currency, saying that “the cost of running Fortnite has gone up a lot.”

Sweeney said the layoffs were not due to artificial intelligence making developer jobs redundant. However, indirectly, the company may face AI-related headwinds, as RAM shortages and chip demand have had ripple effects across the industry, also impacting consumer spending.

Laid-off employees will receive four months of severance pay, with more for people with longer tenures. Epic will continue to pay US employees’ health care costs for six months following layoffs.