Epic Games Reduces Workforce by 1,000 Amid Fortnite’s Deepening Decline

TLDR

• Epic Games is reducing its workforce by 1,000 positions because of declining Fortnite player engagement that began in 2025.
• According to CEO Tim Sweeney, the company is “spending considerably more than it earns.”
• The company has pinpointed $500 million in potential cost reductions in contracting and marketing.
• Sweeney clarified that the job cuts are not connected to AI implementation.
• This marks the second significant reduction; Epic previously dismissed 830 staff members in September 2023.

(SeaPRwire) –    

Epic Games has declared it will terminate over 1,000 workers. CEO Tim Sweeney delivered this announcement to employees on Tuesday, attributing it to a “decline in Fortnite engagement beginning in 2025.”

Epic Games has laid off over 1,000 employees & announced that 3 Fortnite modes will be going offline permanently.

Rocket Racing – October
Ballsitic – April 16
Festival Battle Stage – April 16 pic.twitter.com/EjYSI43ZO8

— DiscussingFilm (@DiscussingFilm) March 24, 2026

In a letter posted on Epic’s website, Sweeney was blunt: the company is “spending significantly more than we’re making.” That’s not something you hide in fine print.

These reductions are part of a broader initiative to steady the business. Epic states it has also found $500 million in cost-cutting opportunities through decreased contracting and marketing expenditures, plus eliminating some vacant positions.

Sweeney referenced both sector-wide and organization-specific obstacles. On the macro level, he mentioned sluggish growth, reduced consumer expenditure, and intensified competition for people’s leisure time from alternative entertainment sources.

He also identified falling console sales as a contributing element. Put simply, video games aren’t the sole entertainment option anymore.

Regarding Epic-specific issues, Sweeney admitted the challenge of producing “consistent Fortnite magic each season” — a difficulty that has evidently overwhelmed the company.

Fortnite only reappeared on Apple’s US App Store in 2025, almost five years after Apple delisted it due to a payment conflict. While returning to mobile was expected to drive growth, engagement has continued to decline.

Epic also raised the price of Fortnite’s virtual currency V-Bucks prior to the layoffs, pointing to rising operational expenses. That decision was portrayed as necessary to “cover costs.”

Not the First Time

This situation is familiar for Epic. In September 2023, the company eliminated 830 positions — roughly 16% of its staff — referencing comparable strains. Sweeney recognized this in his message to employees: “I apologize that we’re in this position once more.”

These reductions also occur during a difficult period for the wider gaming industry. Electronic Arts declared cuts to its Battlefield units in early March, describing it as an effort to “better align” resources.

What’s Next

Sweeney also used the letter to preview future plans. Epic confirms it will continue developing Unreal Engine 6 and intends a “major launch later this year” to launch what he termed the next generation of Epic Games.

It remains somewhat ambiguous whether that launch pertains to Unreal Engine 6 or an entirely new game.

One point Sweeney made explicit: the job cuts are unrelated to AI. “Given that it’s a topic of discussion, I should clarify that these layoffs aren’t connected to AI,” he stated.

Epic Games continues to operate as a private entity and is not listed on any stock exchange.