Epic Games Announces Layoffs of Around 1,000 Employees
Epic Games has announced it will lay off approximately 1,000 employees in one of the largest layoff waves seen in the gaming industry in recent years, citing declining Fortnite engagement that began in 2026.
It feels like lately we're seeing more and more news about significant layoffs at some of the major companies, and it appears that Epic Games will now also lay off around 1,000 employees in one of the largest layoff waves we've seen in the gaming industry in recent years, following the company's announcement of the move in a post on its official website earlier this week.
"I'm sorry we're here again," said Tim Sweeney, CEO of Epic Games. "The decline in Fortnite engagement that began in 2026 means we're spending significantly more than the revenue we're generating, and we're forced to make substantial cuts to ensure the company's funding. These layoffs, along with identified savings of about $500 million in contracts, marketing, and closing open positions, put us in a more stable place," explaining that some of the moves are influenced by trends affecting the entire industry, while others are specifically relevant to Epic's situation.
Sweeney added, "Even though Fortnite remains one of the most successful games in the world, we've faced challenges in consistently delivering the magic of Fortnite every season," and if you were wondering whether AI is involved—which often serves as an excuse for layoff waves in a trend that cuts across the gaming industry but also includes it—Sweeney clarifies later in the post that the current move was not influenced by artificial intelligence. "Today's market conditions are the most extreme we've seen since the early days (of the company), with tremendous upheaval in the industry alongside companies that will emerge victorious on the other side," he said.
Employees laid off from the company will receive at least 4 months' salary based on their tenure at the company, with those having higher seniority eligible for more significant severance pay accordingly. Company employees in the United States will also be eligible for health insurance for a period of about 6 months, and accelerated vesting of company stock options until January 2027.