Epic Games has announced that it will be laying off over 1,000 employees as a result of decreased engagement in Fortnite, which has adversely affected revenue growth and intensified financial pressures.
Tim Sweeney informed employees that the company has been incurring significantly higher expenses than its earnings following a decline in Fortnite engagement that commenced in 2025, necessitating substantial cost reductions.
Sweeney indicated that the layoffs, in conjunction with an additional $500 million in savings across various operations, are aimed at placing Epic on a more secure financial path.
The company has recently raised prices for Fortnite's in-game currency, V-Bucks, to counterbalance rising operational costs, while also confronting broader industry challenges such as slower growth, diminished consumer spending, and heightened competition for user engagement.
Sweeney further clarified that these cuts are not associated with artificial intelligence initiatives and affirmed that Epic remains committed to investing in developers and technology, notwithstanding the ongoing restructuring.
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