Epic Games cuts 1000 jobs, says Fortnite engagement is down

In Brief

Epic Games is laying disconnected 1,000 employees connected Tuesday, according to a institution memo that was posted connected Epic’s blog.

“The downturn successful Fortnite engagement that started successful 2025 means we’re spending importantly much than we’re making, and we person to marque large cuts to support the institution funded,” Epic Games CEO Tim Sweeney wrote successful the memo. “This layoff, unneurotic with implicit $500 cardinal of identified outgo savings successful contracting, marketing, and closing immoderate unfastened roles puts america successful a much unchangeable place.”

Last week, Epic besides increased the price of V-Bucks, the Fortnite in-game currency, saying that “the outgo of moving Fortnite has gone up a lot.”

Sweeney said that the layoffs were not caused by AI making developers’ jobs redundant. Indirectly, though, the institution whitethorn beryllium facing AI-related headwinds, since the RAM shortage and request for chips person had ripple effects crossed the industry, and person besides impacted user spending.

Laid-off employees volition get 4 months of severance pay, with much for radical with longer tenures. Epic volition proceed paying for the healthcare of U.S. employees for six months aft the layoff.

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