Epic is laying off over 1,000 employees as it reduces costs after a downturn in Fortnite engagement, the company said in an announcement to employees.
The company said the engagement decline began in 2025 and cited broader industry headwinds—slower growth, weaker spending and lower console sales—alongside franchise-specific execution challenges that have affected seasonal performance and mobile optimisation.
Related reading
- Nvidia brings 90 frames-per-second VR streaming to GeForce NOW as cloud gaming pushes into headsets
- Xbox highlights games from Black developers across four countries in Black History Month showcase
- Microsoft names Asha Sharma EVP and CEO of Microsoft Gaming
“Today we’re laying off over 1000 Epic employees,” the announcement said; the cuts accompany more than $500 million of identified cost savings in contracting, marketing and by closing open roles, and affected staff will receive at least four months' base pay and company-paid healthcare. In the U.S. impacted employees will receive paid coverage for 6 months, the company added, and it will accelerate stock options vesting through January 2027 while extending equity exercise windows for up to two years.
The note, signed "-Tim", said "the layoffs aren't related to AI," and set out priorities: fresh Fortnite seasonal content, improved mobile optimisation, accelerated developer tools as the company evolves toward Unreal Engine 6, and "huge launch plans" toward the end of the year; Epic will hold a company meeting Thursday to discuss the roadmap.
The recap
- Epic will lay off over 1,000 employees worldwide.
- $500 million identified cost savings across contracting and marketing.
- Company will accelerate Unreal Engine 6 development and launch plans.
