Epic Games, developer of the widely popular battle royale Fortnite and the foundational Unreal Engine, has announced a significant reduction in its workforce, impacting over 1,000 employees. The decision, confirmed by CEO Tim Sweeney in a blog post distributed to staff and subsequently published online, is primarily attributed to a sustained decline in Fortnite engagement that has led to financial unsustainability. In his candid message, Sweeney stated, "Today we’re laying off over 1000 Epic employees. I’m sorry we’re here again."
He elaborated on the rationale, explaining, "The downturn in Fortnite engagement that started in 2025 means we’re spending significantly more than we’re making, and we have to make major cuts to keep the company funded." This round of layoffs, combined with over $500 million in "identified cost savings" from adjustments in contracting, marketing, and the closure of open roles, is intended to stabilize the company's financial position.
Affected employees will receive a severance package comprising four months of base pay, with additional compensation for long-tenured staff. Healthcare coverage will also be extended for six months post-termination. Sweeney indicated that a company-wide meeting scheduled for Thursday will provide further details on Epic's strategic outlook and future direction.
What We Know So Far
TBA confirmed that the game is being built for TBA, with improved visuals, new mechanics, and environments designed around the storybook theme.
We wanted to create a world that feels like stepping into a storybook — full of wonder, surprises, and discovery around every corner.
— TBA
