Epic Games trims staff again
Epic Games announced more layoffs in March despite continued profitability in Fortnite, underscoring that even successful product teams face cuts amid shifting industry priorities. The move highlights the market’s selective focus on core AI and infrastructure bets. (polygon.com)
Epic posted a company memo on March 24, 2026 announcing it will cut more than 1,000 jobs across the business. (epicgames.com) Management said the workforce reduction is part of an effort to realize over $500 million in cost savings through cuts to contracting, marketing and open roles. (epicgames.com) Variety calculated the layoffs equate to roughly 20% of Epic’s global headcount. (variety.com) Epic’s note to staff attributes the move to a downturn in Fortnite engagement that the company says began in 2025, rather than a new strategic pivot. (epicgames.com) The company detailed severance terms that include at least four months’ base pay and six months of company-funded health coverage for U.S. employees. (epicgames.com) CEO Tim Sweeney confirmed the cuts in public comments and explicitly told staff and press that the layoffs “aren’t related to AI.” (onmsft.com) This round follows comparable downsizing in 2023 and arrives amid lingering legal and distribution strains from Epic’s disputes with Apple and Google, which the company has said have impacted its business. (pcgamer.com)