Epic Games cuts 1,000 jobs, says Fortnite engagement is down

Epic Games is laying off 1,000 employees on Tuesday, according to a company memo that was posted on Epic’s blog.

“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,” Epic Games CEO Tim Sweeney wrote in the memo. “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.”