Epic Games is holding mass layoffs that will see more than 1,000 people lose their jobs.
In one of the larger mass layoffs to hit the gaming industry in recent years, Epic Games announced the move in a post on the company’s website on Tuesday morning.
“I’m sorry we’re here again,” Epic Games CEO Tim Sweeney said. “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 layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place.”
Sweeney said that some of the challenges the company is facing are “industry-wide challenges.” However, some are “unique to Epic” as well.
“Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season,” he said.
He then makes it clear that these layoffs are not related to AI.
Sweeney spoke about the company going through major struggles at other points over the last 30 years. However, he says, what’s happening now is something different.
“Market conditions today are the most extreme we’ve seen since those early days, with massive upheaval in the industry accompanied by massive opportunity for the companies that come out as winners on the other side,” he said. “That’s what we’re aiming to do for our players, and we aim to bring other like-minded developers in the industry along on the journey to build an increasingly open and vibrant future of entertainment together.”
Employees being let go will receive at least four months of salary, with more based on tenure with the company. Epic also says that employees in the US will receive six months of paid health care as well as stock option vesting being accelerated through January 2027.
This isn’t the first time that Epic has held layoffs of this scale. Back in 2023, the company let go of 830 employees.
In other news, read about what Capcom said regarding AI and how it plans to use it moving forward. And for even more Insider Gaming delivered directly to your inbox, sign up for our weekly newsletter.
Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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Oracle or Tencent might as well buy Tim Sweeney out.