
Fortnite is one of the most successful games in the world, but that hasn't stopped Epic Games being affected by the tumultuous nature of the games industry. Today, the company has announced that it's laying off over 1000 employees due to a downturn in engagement.
Bloomberg's Jason Schreier initially broke the news (paywalled), Epic CEO Tim Sweeney shared a statement over on the company's official website. On top of 1,000 employees losing their jobs, the company will also be making over $500 million in cost-cutting savings across marketing, contracting, and closing open roles.
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But it seems that Fortnite and Epic have been hit by a "downturn in Fortnite engagement that started in 2025". This comes just two weeks after it announced it would be raising the price of V-Bucks to "help pay the bills".
"Some of the challenges we're facing are industry-wide challenges: slower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation's; and games competing for time against other increasingly-engaging forms of entertainment. And some of our challenges are unique to Epic. Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season."
Rocket Racing, Ballistic, and Festival Battle Stage modes within Fortnite are all going offline — Rocket Racing from October 2026, and the latter two from 16th April (via Wario64).
Employees affected by the layoffs will be offered at least four months of severance, "with more based on tenure". Epic is also extending its healthcare coverage and accelerating stock options vesting.
Sweeney has assured employees in his note that "the layoffs aren't related to AI", and that "To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can."
Of course, many of you will remember that Epic was involved in an extremely long lawsuit with Apple and Google over mobile store fees (that's grossly oversimplifying it) — the game was removed from mobile storefronts back in 2020 and has only just recently returned, which Sweeney acknowledges in his statement.
But back in 2025, the CEO told IGN that they had spent "the greater part" of $1 billion a year trying to expand into the mobile market, which of course includes that lawsuit.
Additionally, Circana's Mat Piscatella shared on Bluesky that Fortnite led in monthly active users across both PlayStation and Xbox In February 2026, but that numbers were down year-on-year — 35% of active players on PlayStation spent 16 hours with the game (compared to 21 in 2025), while Xbox players averaged around 15 hours this year (versus 19 hours in 2025).
Back in 2023, the Fortnite creator laid off around 830 employees for similar reasons. But Sweeney says that the market conditions of today "are the most extreme we've seen since [1990's and 2000's]."
Our thoughts go out to those affected, and we hope you land on your feet.
[source epicgames.com, via bloomberg.com]





Comments 39
That poor multibillion dollar company. They really are struggling with that massive game of theirs. They're really struggling to keep the lights on and the money in their pockets, I hope everyone's not too harsh on them...
Say what you want about Nintendo but I have yet to see any mass layoffs from them
The corporate world at its worst.
Wish the best to those affected by this like usual - while unfortunately the videogame industry as a whole currently has issues, this live-service, free-to-play etc. model certainly doesn't help (as further shown by this already happening at Epic Games in 2023)...
@FawfulsFury
Japanese business and employment laws play a big part in that.
When Iwata and other top Nintendo executives took a big pay cut in 2014, those laws helped to prevent layoffs and protect employment positions.
Trouble in paradise?
That's ~25% of all Epic Games employees, the industry is in very dire straits if the company behind one of the biggest games on the planet needs to lay off this many people at once.
Horse couldn't be flogged forever.
Good luck to all those losing their jobs.
I blame myself for all those free games I've picked up from the Epic Games Store.
Sounds like an Epic Failure to me.
So even the juggernaut is affected. Goddamn. But I suppose when the game is FTP and relies on its in store currency skin and battle pass purchases it’s none too surprising.
Fortnite was also one of the most generous in terms of rewards and unlockables you could earn, (in free or paid tiers), so it was bound to hit them at some point.
I still commend all the newer modes they attempted to implement. Rocket Racing is extremely underrated (basically Excitetruck) and it sucks that they weren’t able to find engagement on this Arcady racer as it was awesome. The music festival battle mode i am less surprised is leaving, but at least it isn’t losing its main Rockband mode as thats Harmonix only output as of late.
@RupeeClock yeah but at the time Iwata also made clear that one of the most competitive aspects of Nintendo was having lower prices than the competition.
I REALLY doubt the current people in leadership at Nintendo feels the same, seeing what happened lately.
I'm no expert in this game (played it a bit to be sociable, but it's not my thing) but I've noticed my kids and their friends used to be on it daily up until a few months ago, and they've now abandoned it. When asked why, they responded with "it's gone rubbish."
Could be another bellweather of things to come. Last time Epic did this, several companies followed is short succession.
This could be the canary in the coal mine.
OR it could be that Fortnite is almost ten years old at this point.
@GoldenSunRM Nintendo, much like Apple, hasn’t gone on a mass hiring spree like other companies in the space. Hence why Nintendo Co in Japan has rarely laid people off or eliminated roles. Also, I believe if the company was in stretched like that again, Furukawa would do what Iwata did. It’s part of Nintendo’s corporate identity, which he hasn’t changed since Iwata’s passing. Other Japanese companies do the same practice. The last president of Toyota lost his role when the company lost their top spot in the world, so the new president’s mandate is to claim the top spot again.
Your feelings toward the company don’t fit the reality.
Don't forget how they then turned around and bought a ton of prizes for the new season.
"Pay the bills"
I bet no overpaid management / uppermanagement got cut, only regular staff!
Guys they’re a small indie company cut them some slack./s
@progx it's not a feeling that part of the core aspect of what was the identity of the company has changed.
Nintendo literally passed from being the company parents go to for the most high quality and cheap (in terms of money spent) product for their kid, to the opposite. It's clear that something has changed since Iwata's passing.
"Get less for your money while we fire a load of staff: the Epic Games story!"
It’s a complicated topic. My wife works in market research, and she had to conduct a detailed study on this subject. And we found out that (I won’t remember all of them):
We are not going to stop consuming the vegetables available in our city’s market, nor the tomato sauce; we won’t sell our car, and we won’t stop using the internet. And, without a doubt, I’m not going to stop playing Rocket League (one of my favorite games of all time).
The world is undergoing an intense transformation. I don’t know what will happen in the future. I only know that it’s impossible to contain it.
My strategy for my children (a 3-year-old daughter and a 10-month-old son) is:
If you graduate in agronomy, I will finance the tractor that will operate autonomously with AI. Be the owner of your own production.
If you graduate in medicine, I will finance your AI-powered MRI machine (or whatever equipment is necessary). Be the owner of the machine.
The advice I give to young people is: start your own company, be your own business, be your own brand. Don’t work for other people. Because in 30…40…50 years, I doubt that your job will still exist.
I'll never forgive Epic Games for making Fall Guys terrible. This just adds to the pile of their sins.
I hope all the laid-off workers can find better employment soon.
Used to be working for a big company like Epic meant job security, they could weather the storms of a big flop or an industry lull. But it's the opposite now, earn 10 billion this month instead of 11 billion? There goes your job to make the shareholders happy.
It takes remarkably little effort to leave a comment on a news story, doesn't it?
@westman98
"needs to"
These headlines always bring back a line by an idiot back at university, who mistook himself for an economist, because he happened to have a degree: The costs are always the most expensive part.
Took me years to fully realize that he was in fact not an idiot at all. He was indeed an economist and doing a fine job at it, too. The profession itself though is idiotic.
He could never be quite convinced that companies earn what they spend and workers spend what they earn. Why? It just didn't fit the modells and the modells, that much he knew, were always right - empirical reality and compeling logic be damned.
To his credit, he never claimed to be a scientist. He had some real backbone in that regard, unless the rest of his department.
@Rykdrew Best advice: inherit wealth.
I wish the best for the employees affected and hope that they find stable jobs again soon, but I do realize that sometimes, laying off employees really does help a business. Why pay 1,000 more people if you don't need them around and the other employees can do it just fine? That's what I would do if I were the head of a big company. But still, I do hope that the employees affected find a new stable job soon.
@westman98 they don’t need to lay off people, they want to lay off that many people. Epic has one of the most successful games and one of the most used game engines. They have enough money.
With regards to Fortnite, I guess the increase in price didn’t help them “pay the bills.” Honestly, it’s terrible to see people lose jobs. I hope they find something new soon. I hope very much that economic stability becomes something that is more assured in our world in the future.
I do wonder if Fortnite’s finally past its peak though. The game’s almost 10 years old now. I mean, when I was a kid, everyone was playing this game called Super Mario Brothers, but when I was a young adult, freshly out of school, everyone was playing Halo. While Mario and Halo are still around, things are different. By 2017, when Fortnite released, Mario wasn’t anything like the Mario I played when I was 10, and Halo was basically limbering around like a slowly decaying undead. Fortnite’s gotten bigger in 9 years, but it’s mostly had success in its BR format, and while it’s changed some, it’s not the same change that Mario had when I went from 10 to 19 years old. Those kids that were 10 nine years ago are probably bouncing off to newer things and the kids that are 10 now might not be as interested. My son’s 8 and he’s got no interest in it.
I think there’s typically a generational shift in games, and if you’re not adapting and making new things with recognizable characters, a game can only go so far. On Mario’s S curve, he can always reinvent himself to prevent dying and bank on nostalgia a little bit sometimes to stretch things out a bit. Without having its own recognizable characters, I do wonder how long Fortnite can plunder yesterday’s pop culture to remain relevant.
Never thought I'd see Fortnite's demise coming soon.
Having navigated a round of layoffs at my work, I'll say they are not about efficiency. If anything, they cause massive internal turmoil and havoc since the survivors have to pickup the slack.
Layoffs are for investor engagement for future revenue calls and give the impression there is less overhead. The IMPRESSION of efficiency is enough for investor sentiment and get a point or two on the stock value
Everyone lies to everyone. #thoughtsandprayers
There's only one answer and it's boycott.
They say Donald Mustard's house grew two sizes that day
@Rykdrew what a stupid reasoning. Are you up to a world with 8 billion of brands? Are you telling EVERYONE should have their own bussiness? That's absolutely *****.
Fortnite is about to reach it's lowest point. I am DONE with this game. Brainrot Characters in the game, Shutting down 3 whole game modes, and now THIS.
God i wish i could go back to Spellbreak. I'm not gonna financially support a game with Tung Tung Tung Sahur in it.
Re: Nintendo, I think their lack of layoffs is part of their corporate culture. . . but its also not an act of charity, either. Unlike nearly every other company in the industry, Nintendo thinks about the long term. They don't constantly hire and fire talent, because they want a consistent talent base that isn't working on "the next game", but on game after game for upcoming decades. While other companies view personnel as interchangeable cogs to be supplied ad hoc... which amongst other effects means they largely get the work that results from interchangeable cogs.
Re: Epic- I suspect at least a big part of this isn't actually Fortnite at all. Rather, its the Epic Game Store, and the amount of cash they've been burning to try and brute force it into becoming an industry monopoly. All those cash-up-front deals and low percent contracts and exclusivity clauses and free games didn't come for free; and now they are finding that trying to treat the EGS as a loss leader has generated a fat lot of bupkiss, in terms of actual profits.
@Dr_Corndog Yes
So, the cashcow is starting to run dry? Poor Epic Games! I never got into Fortnite, so I really don't care, but it is quite obvious where this is going. Lay-offs, cost savings, and price hikes, so the higher ups are not affected for the time being. Capitalism at its finest!
I can't fathom so many people working on one game. As unfortunate as this is for the devs, what's bad for these types of games is good for the industry. There is no gaming industry if gamers can't rip themselves away from Minecraft, Roblox, and Fortnite to go try other things.
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