Fortnite-maker Epic Games lays off 1,000 more staff

It is the second time in recent years the company has announced lays offs due to struggles with its blockbuster online game.

Epic Games has laid off over 1,000 employees due to ongoing financial struggles, as CEO Tim Sweeney revealed the company is spending significantly more than it's earning. A key factor is a decline in Fortnite engagement since 2025, prompting major budget cuts to sustain operations. Sweeney cited broader industry challenges, including declining console sales, and internal difficulties maintaining Fortnite’s appeal with each new season. While Epic won its long-running legal battles with Apple and Google, the costly process has only started to yield returns. He emphasized that the layoffs were not related to AI. Epic plans to refocus efforts on revitalizing Fortnite with dynamic seasonal content and hinted at a new phase for the company later in the year. This round of layoffs follows a previous reduction of 800 staff in 2023, despite Sweeney claiming financial stability in 2024. Two weeks before the layoffs, Epic increased Fortnite V-Bucks prices due to rising operational costs. Post-layoffs, the company will retain just over 4,000 employees.

On March 24, 2026, Epic Games announced it is laying off over 1,000 employees and discontinuing support for three Fortnite modes: Rocket Racing, Ballistic, and Festival Battle Stage. Rocket Racing, developed by Rocket League studio Psyonix, was a high-profile racing mode inspired by Mario Kart and was central to Epic’s initial vision of a multi-game metaverse launched in 2023. However, it failed to sustain enough player interest and will shut down in October 2026. The PvP element of Fortnite Festival, Battle Stage, and the competitive FPS Ballistic will both be discontinued on April 16, 2026. Ballistic's cancellation has sparked particular disappointment among fans, who saw potential in its Counter-Strike-like gameplay. Epic attributes the mass layoffs and mode closures to a downturn in Fortnite engagement. CEO Tim Sweeney emphasized the need to focus on delivering fresh seasonal content, compelling gameplay, and live events to revitalize Fortnite’s core experience.

Epic Games has announced the layoff of over 1,000 employees, citing declining engagement with Fortnite and broader industry challenges. CEO Tim Sweeney explained that the drop in Fortnite popularity since 2025 has significantly impacted the company’s revenue, prompting not only layoffs but also $500 million in cost reductions across marketing, contracts, and hiring. These measures aim to stabilize the company amidst slower industry growth, reduced console sales, and increasing entertainment alternatives. In addition to the layoffs, Epic is shutting down lesser-played game modes such as Ballistic, Rocket-Racing, and Festival Battle Stage, which will be accessible until April 16. Despite speculation, Epic clarified that AI was not the cause of the cuts. Although the company continues efforts to optimize Fortnite for mobile markets and recover from its absence on the iOS App Store—an absence that reportedly cost billions—this restructuring is described as necessary for long-term sustainability. Affected employees in the U.S. will receive at least four months' severance and six months of healthcare coverage.

Epic Games ha despedido al 20% de su plantilla, lo que equivale a 1.000 trabajadores, en una decisión sorpresiva que ha generado gran indignación entre empleados y la comunidad de Fortnite. El propio CEO, Tim Sweeney, comunicó que los gastos superaban los ingresos desde hace tiempo y que los recortes son necesarios para sanear las finanzas de la empresa. Se cerrarán modos como Rocket Racing, Ballistic y Festival Battle Stage por su baja retención de jugadores, mientras se seguirá apoyando UEFN y modos exitosos. Entre los despedidos hay figuras clave del éxito de Fortnite, lo que agudiza el golpe a la compañía. Las declaraciones de Sweeney, señalando que los despidos son “una oportunidad de oro para otras empresas”, fueron criticadas por su falta de sensibilidad. Además, se ha cuestionado la estrategia de monetización de Epic, considerada insostenible a largo plazo debido a los altos costos generados por colaboraciones y pagos a creadores. El caso refleja una tendencia en la industria del videojuego donde el crecimiento desmedido conlleva a recortes drásticos cuando los ingresos no lo sustentan. El futuro de Fortnite queda ahora en entredicho.

Epic Games, selskapet bak det populære spillet Fortnite, har annonsert at de sier opp over 1.000 ansatte. Årsaken er sviktende økonomi og dalende engasjement rundt Fortnite. Ifølge toppsjef Tim Sweeney bruker selskapet betydelig mer enn det tjener, noe som krever drastiske kostnadskutt for å sikre videre drift. Dette inkluderer også over 500 millioner dollar i besparelser på kontrakter, markedsføring og ubesatte stillinger. Nedbemanningen vil ikke være relatert til bruk av kunstig intelligens. Sweeney peker på generelle utfordringer i spillbransjen, som svakere vekst, lavere forbruk og at nye spillkonsoller selger dårligere enn tidligere generasjoner. Han innrømmer også at Epic Games har slitt med å levere like engasjerende innhold i Fortnite hver sesong. Nedbemannede ansatte får minst fire måneders lønn i sluttpakke, og seks måneders betalt helseforsikring i USA. Dette er andre oppsigelsesrunde på tre år etter at 830 ansatte mistet jobben i september 2023. Selskapet har nylig også økt prisene på Fortnites spillvaluta på grunn av stigende driftskostnader.