Epic cut ~1,000 jobs

Epic Games cut more than 1,000 jobs on March 24 after a 2025 drop in Fortnite engagement squeezed the company’s finances. (epicgames.com) Chief executive Tim Sweeney said the cuts, plus more than $500 million in savings from contractors, marketing and unfilled roles, were meant to put Epic in “a more stable place.” Epic said the layoffs were not tied to artificial intelligence. (epicgames.com) Epic told employees it had about 4,000 workers left after the cuts, which put the reduction at roughly 20% of its workforce. The Cary, North Carolina, company last made large layoffs in September 2023, when it cut 830 jobs, or about 16% of staff. (abcnews.com) The company’s explanation centered on Fortnite, still one of the biggest games in the world but no longer growing the way Epic needed. Sweeney said Epic had struggled to deliver “consistent Fortnite magic with every season” while also spending heavily on mobile expansion and future tools. (epicgames.com) That matters because Fortnite is not just a game inside Epic. It helps fund Unreal Engine, the software toolkit used to build games, and Unreal Editor for Fortnite, the creator platform Epic wants to carry into Unreal Engine 6. (epicgames.com) Epic is also still working through a broader strategy built around Fortnite as an entertainment hub, not only a battle royale shooter. In February 2024, The Walt Disney Company said it would invest $1.5 billion in Epic and work on a connected universe tied to Disney, Pixar, Marvel, Star Wars and Avatar. (eurogamer.net) Sweeney told staff Epic was “only in the early stages” of returning Fortnite to mobile phones after its long legal fights with Apple and Google over app store payments. He also said the company planned “huge launch plans” toward the end of 2026. (epicgames.com) Employees who lost their jobs were promised at least four months of base pay, more cash based on tenure, and extended benefits. In the United States, Epic said it would pay for six months of healthcare coverage and accelerate stock vesting through January 2027. (epicgames.com) Inside Fortnite, remaining staff quickly warned players to expect disruption. Gameplay producer Robby Williams said teams would “pick up the pieces” after the cuts, but could not yet gauge the full effect on the game through the rest of 2026. (eurogamer.net)