Epic layoffs: ~1,000 roles cut

Epic Games cut more than 1,000 employees on March 24, its second mass layoff in less than three years. (epicgames.com) Chief Executive Officer Tim Sweeney told staff the cuts followed a downturn in Fortnite engagement that began in 2025 and left Epic “spending significantly more than we’re making.” Epic said the layoffs, plus more than $500 million in identified savings from contracting, marketing, and unfilled roles, were meant to stabilize the company. (epicgames.com) Epic said affected workers would get at least four months of base pay, with more based on tenure, plus six months of company-paid health coverage in the United States and faster stock-option vesting through January 2027. Sweeney also said the cuts were “not related to AI.” (epicgames.com) The layoffs landed at a company that still runs one of gaming’s biggest hits. Sweeney said Fortnite remains “one of the most successful games in the world,” but he also said Epic has struggled to deliver “consistent Fortnite magic with every season” as console sales slow and players split time across more entertainment options. (epicgames.com) This was not Epic’s first retrenchment. On September 28, 2023, the company said it was laying off around 16% of staff, or about 830 workers, while selling Bandcamp and spinning off most of SuperAwesome after what Sweeney called a period of spending “way more money than we earn.” (epicgames.com) The March cuts also reached some of Fortnite’s best-known creators. Game Rant reported that Vitaliy Naymushin, an artist who said on LinkedIn that he created “majority of the original cast of characters” in Fortnite, including Jonesy and Ramirez, was laid off after joining Epic in January 2015. (gamerant.com) Game Rant also reported that senior gameplay designer Mike Jones was among those cut after eight years at Epic. The outlet said Jones worked on movement features including tactical sprint, stamina, sliding, mantling, and hurdling. (gamerant.com) The reductions came while Epic kept pushing ahead on large partnerships and new games. Epic and Disney announced on February 7, 2024, that Disney would invest $1.5 billion for an equity stake alongside a multiyear plan for an “open, persistent and social universe” connected to Fortnite. (epicgames.com) That Disney project is still central to Epic’s plans. Reporting published this week said Epic is developing a Disney-themed extraction shooter as part of the partnership, while Epic said that report was “not reflective of the ambitions of the Disney collaboration” and that it is building “a new games and entertainment universe of Disney experiences.” (gamerant.com) For now, Epic is trying to cut costs without stepping back from Fortnite, Unreal Engine, or its Disney tie-up. Sweeney told employees the company’s next step is to ship stronger Fortnite seasons, move from Unreal Engine 5 and Unreal Editor for Fortnite toward Unreal Engine 6, and push toward “huge launch plans” later this year. (epicgames.com)