Epic Games cuts 1,000 jobs amid 'Fortnite' slump

March 25, 2026 - 03:58

In a significant restructuring move, Epic Games has laid off approximately 1,000 employees, representing about 16% of its workforce. The company announced the cuts in a company-wide memo, citing unsustainable financial spending and a notable decline in user engagement with its flagship title, Fortnite.

Founder and CEO Tim Sweeney addressed the staff directly, expressing regret over the decision. He stated that the company had been spending far more money than it was earning, a situation exacerbated by a recent downturn in the Fortnite ecosystem. Sweeney explained that leadership had hoped to stabilize finances through cost-cutting measures not involving layoffs, but ultimately concluded that a workforce reduction was unavoidable to achieve long-term sustainability.

The memo outlined that the layoffs are part of a broader effort to restructure the company and refocus on its core initiatives. Epic Games, known not only for Fortnite but also for the Unreal Engine and the Epic Games Store, has expanded aggressively in recent years. This move signals a strategic pullback from some of that expansion as it aims to fortify its financial foundation. The company is providing severance packages and support services to all affected employees during the transition.