Epic Games to lay off more than 1,000 employees amid Fortnite downturn

CARY, North Carolina -- Epic Games is cutting more than 1,000 jobs as the company faces a sharp downturn in Fortnite engagement and broader struggles across the gaming industry.

In a message to employees, Epic leadership said Fortnite has seen declining activity since 2025, leaving the company "spending significantly more than we're making."

In addition to layoffs, Epic said it has identified more than $500 million in cost saving measures across contracting, marketing and unfilled roles.

Epic emphasized the cuts are not related to artificial intelligence, saying the company intends to keep investing in developers and content creation.