Video game maker Epic Games, the creator of Fortnite, announced on Tuesday it is laying off 1,000 employees, or about 20% of its workforce. (In 2023, Epic cut 830 jobs or 16% of its workforce at that time, per Variety.)
“I’m sorry we’re here again,” Epic Games CEO Tim Sweeney said in a note to Epic employees, which the company posted on X. “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.”
“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,” Sweeney continued.
Fast Company reached out to Epic, which had no further comment.
The note said some of the challenges the company is facing were industry-wide. Those challenges included lower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation’s; and games competing for time against other entertainment. Sweeney said the layoffs are not due to AI.
However, some of the challenges are unique to Epic, most notably, the challenges stemming from a long-running legal battle with Google and Apple to return Fortnite back to both app stores, after Epic encouraged Fortnite customers to intentionally break the rules, resulting in Fortnite getting kicked off both phones and tablets.
Epic, meanwhile, argued both companies violated antitrust laws by forcing users to pay for apps and in-app purchases through their app marketplaces, while taking a slice of every transaction.
