Overview
- Epic Games, which announced the cuts Wednesday, eliminated more than 1,000 roles that account for roughly one fifth of the company.
- The company will have just over 4,000 employees after the reductions, marking a second major downsizing since similar cuts in 2023.
- Epic says the driver is a drop in Fortnite use that began in 2025, with Circana data showing monthly playtime falling on PlayStation from 21 to 16 hours and on Xbox from 19 to 15.
- Management targets more than $500 million in savings by trimming marketing, contracts and open roles, and by pursuing asset moves that include a planned Bandcamp sale.
- Departing staff will get at least four months of base pay and, in the U.S., six months of company-paid health insurance, with an all-hands Thursday to explain next steps.