Epic Games, the creator of the immensely popular Fortnite, has laid off more than 1,000 employees, following a reduction of 830 staff in September 2023. The announcement came via a note from CEO Tim Sweeney, who cited a downturn in Fortnite engagement beginning in 2025 as a primary reason for the cuts.
Despite Fortnite generating approximately $4bn (£3.2bn) in annual revenue and Epic Games earning an estimated $6bn (£4.8bn) in 2025, the company is spending more than it earns. Sweeney stated that the layoffs, combined with over $500m in cost savings from contracting, marketing, and closing some open roles, would place the company in a more stable position.
Sweeney attributed the job losses to industry-wide challenges, including slower growth, weaker consumer spending, and tougher cost economics. He also indirectly acknowledged that expensive legal actions against Google and Apple contributed to the financial strain, though he noted these were necessary.
The layoffs have sparked debate about the sustainability of the live-service game model, which has seen titles like Xdefiant, Highguard, and Concord fail shortly after launch. Critics argue that executives' obsession with growth and short-term bets is harming the industry, with developers bearing the brunt of corporate missteps.
