\n
<\/p>\n
Video game maker Epic Games, the creator of Fortnite<\/em>, announced on Tuesday it is laying off 1,000 employees, or about 20% of its workforce<\/a>. (In 2023, Epic cut 830 jobs<\/a> or 16% of its workforce at that time, per Variety<\/em>.)<\/p>\n<\/div>\n \u201cI\u2019m sorry we\u2019re here again,\u201d Epic Games CEO Tim Sweeney\u00a0said in a note<\/a> to Epic employees, which the company posted on X<\/a>. \u201cThe downturn in Fortnite <\/em>engagement that started in 2025 means we\u2019re spending significantly more than we\u2019re making, and we have to make major cuts to keep the company funded.\u201d<\/p>\n \u201cThis 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,\u201d Sweeney continued.<\/p>\n Fast Company<\/em> reached out to Epic, which had no further comment.<\/p>\n<\/div>\n 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\u2019s; and games competing for time against other entertainment. Sweeney said the layoffs are not due to AI.<\/p>\n However, some of the challenges are <\/em>unique to Epic, most notably, the challenges stemming from a long-running legal battle with Google and Apple to return Fortnite<\/em> back to both app stores, after Epic encouraged Fortnite<\/em> customers to intentionally break the rules, resulting in\u00a0Fortnite<\/em>\u00a0getting kicked off both phones and tablets.<\/p>\n 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.\u00a0<\/p>\n<\/div>\n