Epic Cuts Over 1,000 Jobs
Epic Games said it will lay off more than 1,000 employees after sustained declines in Fortnite engagement — the company’s second major reduction in three years and a sign of cooling consumer growth in parts of the games industry. Studios are under pressure to find new engagement and monetization levers beyond core live titles. (reuters.com)
On March 24, 2026 Epic founder and CEO Tim Sweeney sent an internal memo explaining the company’s financial stance and apologizing to staff, saying Epic had been “spending significantly more than we’re making” since 2025. (epicgames.com) The company said it has identified more than $500 million in cost savings across contracting, marketing and by closing open roles as part of a broader restructuring plan. (epicgames.com) Employees affected will receive at least four months of base pay in severance and, in the U.S., six months of company‑paid healthcare; Epic also said it will accelerate stock option vesting through January 2027 and extend equity exercise windows for up to two years. (epicgames.com) Epic adjusted Fortnite’s in‑game economy earlier in March, cutting V‑Bucks amounts per pack (for example, the $8.99 pack now grants 800 V‑Bucks instead of 1,000) as the studio cited rising operating costs and implemented the changes starting March 19, 2026. (fortnite.com) Fortnite’s Chapter 7 Season 2, titled “Showdown,” went live on March 19, 2026, delivering a major map and loot refresh just days before the company announced the workforce changes. (dexerto.com) Epic’s March 2026 action follows a prior reorganization on September 28, 2023 that removed roughly 830 roles (about 16% of staff), when the company also divested properties such as Bandcamp and spun off parts of SuperAwesome. (epicgames.com)
