Epic Games Has Laid Off Over 1,000 Employees Because Of A “Downturn In Fortnite Engagement”

Epic Games has confirmed that over 1,000 staff members are being laid off in response to waning Fortnite profits.

An internal memo from Epic Games CEO Tim Sweeney has been published on the company’s website, revealing that over 1,000 individuals are being let go. The announcement begins with “I’m sorry we’re here again,” before Sweeney launches into the reasoning behind the colossal wave of layoffs. Citing a “downturn in Fortnite engagement that started in 2025,” Sweeney claims that the company is “significantly more than we’re making,” with major cuts being the only path forward for the huge publisher.

Sweeney goes on to explain that some of the issues plaguing Fortnite, and Epic at large, are industry-wide, such as “slower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation’s; and games competing for time against other increasingly-engaging forms of entertainment.” Additionally, the CEO notes that other problems are more specific to Epic, stating, “Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season.”

One of the bigger challenges Sweeney refers to is the company’s ongoing legal battle with mobile giants Apple and Google over the 30% cut the platforms take from in-app purchases. This lengthy court dispute, which Epic ultimately won, has undoubtedly cost the company dearly, with Fortnite still unavailable on iOS. Sweeney states in the memo that, “we’re only in the early stages of returning to mobile and optimising Fortnite for the world’s billions of smartphones; and in being the industry’s vanguard we have taken a lot of bullets in a battle which is only in the early days of paying off for ourselves and all developers.”

Sweeney also made it clear that “the layoffs aren’t related to AI,” before noting that productivity tools should be provided to developers to ensure they produce the best possible product. Sure. Speaking to the human element of all of this at the end of the statement, Sweeney confirmed that all affected staff will receive a minimum of four months’ severance pay and accelerated stock options.

This isn’t the first time Epic has shown a significant number of people the door, with roughly 800 staff having been laid off as recently as 2023. Interestingly, the reasoning for that round of job cuts, as stated by one Tim Sweeney, was that, “we’ve been spending way more money than we earn.” That sounds awfully familiar.

Fortnite is a goliath, that’s undeniable. It’s such a commercial and cultural touchstone that everyone and their dog in the industry has, at some point, tried to replicate its success. The free-to-play live-service boom can realistically be attributed to the unbelievable growth this battle royale has seen since its launch in 2017. However, Fortnite’s success has come with increased expectations to stay on top, to stay relevant, and to grow, which just isn’t sustainable. It’s a running joke that everyone and everything is in Fortnite, with crossovers and cameos littering the game’s storefront on a regular basis. But the well will eventually run dry.

Epic’s reach for infinite growth has also seen the introduction of various new modes and game types, such as the Guitar Hero-like Fortnite Festival mode. Of course, each of these experiences also offers a million monetisation opportunities, though it appears that not all have remained profitable. Concurrently with the layoffs, it was announced that three Fortnite modes would go offline. Rocket Racing, Ballistic, and Festival Battle Stage are all being sunset between April and October of this year, with the social post announcing their closure claiming that “We’ve built a lot of Fortnite modes, and in some cases we failed to build something awesome enough to attract and retain a large player base. We are going to shut these modes down on the schedules outlined below – we’re grateful for everyone who played.”

As with any mass layoff, our thoughts are with the huge number of people affected. Not just those who lost their source of income, but also their families and loved ones. Even though I know it won’t be the case, I desperately hope this is a big enough warning shot for publishers and conglomerates in the gaming space that are looking to chase the Fortnite model. Surely seeing that gods do bleed would be enough to get some of these larger groups to change course.

I hope so, but I doubt it.