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Epic Games has announced a sweeping round of layoffs impacting more than 1,000 employees. In an internal message later shared publicly, CEO Tim Sweeney described the decision as difficult but necessary, pointing to a sustained decline in player engagement for Fortnite that began in 2025. Despite the title’s ongoing popularity and high-profile collaborations, the company admitted it has been “spending significantly more than we’re making.” These layoffs are part of a broader restructuring effort that includes over $500 million in cuts across marketing, contractors, and unfilled roles.
Epic emphasized that its struggles are not isolated, but instead reflect broader challenges across the gaming industry. Sweeney cited that player spending has slowed, current console generations have underperformed compared to past cycles, and games now face increasing competition from other forms of digital entertainment. Even Fortnite, one of the most successful games of this generation, has had difficulty maintaining consistent seasonal engagement. In response, Epic has taken steps such as raising the price of in-game currency V-Bucks to stabilize revenue.
The layoffs are also having a ripple effect across Epic’s ecosystem, with several projects and games being shut down or scaled back. Rocket Racing, Ballistic, and Festival Battle Stage are scheduled to go offline
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