Overview
- Epic, which disclosed the move Tuesday, is laying off more than 1,000 employees — about 20% of its staff — and targeting over $500 million in savings across contracting, marketing, and open roles.
- CEO Tim Sweeney said Fortnite engagement has fallen since 2025, leaving the company spending more than it earns, and he emphasized the layoffs are not related to artificial intelligence.
- Affected workers will get at least four months of base pay, with U.S. employees receiving six months of company‑paid healthcare plus accelerated stock vesting through January 2027 and extended equity exercise windows.
- Epic will retire several lesser‑played Fortnite modes, including Rocket Racing, Ballistic, and the Festival Battle Stage, as it concentrates on fresh seasonal content and the move toward Unreal Engine 6 with major launch plans later this year.
- This is Epic’s second large cut in three years after 830 layoffs in 2023, and leaders scheduled a company meeting Thursday to outline the roadmap and next steps.