With Fortnite now in its second year of decline, Epic Games has cut a number of jobs. The developer is facing the “most extreme market conditions” in a long time.
Ahead of all the explanations, categorizations and justifications is an apology: “Today we are laying off more than 1,000 employees. I am sorry that we have reached this point again,” wrote CEO Tim Sweeney in a message to the Epic Games workforce.
The video game company had already parted ways with 830 employees in the fall of 2023. Sweeney had already announced at the time that Epic Games was spending more money than it was earning. This has probably not changed – because the latest explanations read similarly.
500 million in additional savings
“The decline in user activity in Fortnite that began in 2025 means that we are spending significantly more than we are earning. We have to make significant cuts to keep the company financially afloat,” Sweeney explains.
In addition to the layoffs, Epic Games is also cutting costs by over 500 million US dollars in contracting, marketing and by eliminating vacant positions. It is important for Sweeney to emphasize that the measures are not related to the expansion of AI.
The CEO cites challenges affecting the entire industry: slower growth, lower consumer spending and higher costs. The current generation of consoles is selling worse than the previous one, and entertainment competition is becoming increasingly fierce.
“The current market conditions are the most extreme we’ve seen in a very long time,” says Sweeney: “With massive upheaval in the industry that comes with huge opportunities for the companies that emerge as winners from this phase.”
Epic Games wants to be one of these ‘winners’ – “for our players”.
Hopeful mobile comeback
In order to do this, the developer must first stabilize its biggest games drawcard: “Although Fortnite is still one of the most successful games in the world, we’ve struggled to deliver the usual Fortnite magic every season,” Sweeney admits.