The excitement surrounding Fortnite seems to be dwindling.
Epic Games recently announced a significant decrease in workforce, letting go of around 1,000 employees on Tuesday. The company attributed this move to attrition within their Fortnite initiatives.
In a memo addressed to staff, CEO Tim Sweeney recognized the ongoing “challenges in consistently delivering the magic of Fortnite season after season.” He stated, “Today, we are laying off over 1,000 Epic employees. I sincerely regret being here again. The decline in Fortnite engagement, which started in 2025, has led to a situation where our expenses exceed our earnings, necessitating major cuts to sustain the company.”
Sweeney also highlighted the pressure the video game industry is placing on the company’s finances. The memo pointed out that the layoffs, coupled with over $500 million saved from reduced contracts and marketing and a shortage of staff, would hopefully lead to a more stable financial footing.
The gaming industry is currently experiencing slowed growth, as players seem to prefer sticking with familiar titles amidst economic uncertainty. Live service games, which depend on a regular influx of fresh content to keep users engaged, are starting to show signs of struggle.
According to Sweeney, “In today’s market conditions, this is the most severe situation we’ve faced since Epic’s inception in 1991.” He clarified that these layoffs are not related to AI.
This latest round of layoffs marks Epic’s second large-scale reduction in three years; previously, in September 2023, the company cut about 830 positions, approximately 16% of its workforce.
Meanwhile, the gaming sector faces mounting pressure. Reports indicated that in September, Electronic Arts also laid off hundreds of employees and canceled an in-development game. Amazon’s layoffs late last year similarly impacted its gaming division.
Sweeney pointed out that while some challenges are widespread across the industry—like slower growth and lower console sales—others are specific to Epic. Despite the massive success of Fortnite, he acknowledged difficulties in continuously delivering engaging content season after season. He mentioned, “We’re still in the early phases of optimizing Fortnite for mobile devices.” He reflected on the company’s pioneering role in the industry, indicating that they have faced numerous challenges but have not fully reaped the rewards yet.
For those affected, the memo stated that laid-off employees will receive “at least four months of base pay” along with an extension of “Epic-paid medical insurance.”
