Fortnite Creator Epic Games Cuts Over 1,000 Jobs
Epic Games has announced a significant reduction in its workforce, confirming the layoff of over 1,000 employees on March 24, 2026.
CEO Tim Sweeney attributed the decision to a sharp decline in Fortnite engagement that began in 2025, leading to expenditures that exceeded the company’s revenue.
To stabilize its financial position, the company is also implementing over $500 million in cost savings across marketing and contracting while closing various open roles.
Sweeney noted that the gaming industry at large is currently facing challenges such as slower growth, weaker consumer spending, and underperforming console sales.
Despite Fortnite remaining a major global success, Epic Games has struggled with delivering consistent content updates and is still in the early stages of expanding its mobile presence.
The company clarified that these staff reductions are not related to the implementation of artificial intelligence.
Moving forward, Epic Games plans to focus on fresh seasonal content for Fortnite and the development of Unreal Engine 6.
Impacted employees will receive a severance package including at least four months of base pay and extended healthcare coverage.
US based staff will receive six months of paid healthcare alongside accelerated stock option vesting through January 2027.
A company-wide meeting is scheduled for Thursday, March 26, 2026, to discuss the future roadmap in greater detail.
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