Epic Games cuts 1,000 jobs, says Fortnite compatibility has dropped

Epic Games is laying off 1,000 employees on Tuesday, according to a company memo posted on Epic’s website. blog.

“Fortnite’s decline in engagement starting in 2025 means we’re spending more than we’re making, and we need to cut back significantly to keep the company profitable,” Epic Games CEO Tim Sweeney wrote in a memo. “These layoffs, along with the $500 million identified in contracting, marketing, and closing positions put us in a stable position.”

Last week, Epic too added value V-Bucks, the game currency of Fortnite, says that “the cost of running Fortnite has increased dramatically.”

Sweeney said the layoffs weren’t caused by AI making the construction industry’s jobs obsolete. Indirectly, the company may face problems related to AI, because the shortage of RAM and the need for chips has had problems for the entire industry, and it has also affected consumer spending.

Laid-off workers will receive four months’ pay, with more money for long-serving employees. Epic will continue to pay for US workers’ health benefits for six months after they are laid off.