Epic Games Lays Off Over 1,000 Employees

Epic Games announced on Tuesday that it is laying off more than 1,000 employees, a move aimed at addressing financial pressures stemming from a decline in engagement with its flagship title, Fortnite. The cuts, which could affect up to 23 percent of the company's workforce, come as the video game developer grapples with spending that exceeds its revenue.

In a message to staff shared publicly on the company's blog, Chief Executive Tim Sweeney attributed the decision to a downturn in Fortnite usage that began in 2025. "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," Sweeney wrote. He noted that the layoffs, combined with more than $500 million in identified savings from reductions in contracting, marketing and leaving some roles unfilled, would position the company on more stable financial footing.

Sweeney highlighted a mix of industry-wide and company-specific challenges. Broader issues include slower growth, reduced consumer spending, higher operational costs and weaker sales of current-generation consoles compared to the previous cycle. Games like Fortnite also face increased competition from other forms of...