Business
business
Max Knoblauch

“Fortnite” maker Epic is laying off 1,000 employees amid engagement downturn

“Fortnite” creator Epic Games on Tuesday announced that it’s cutting 1,000 jobs across the company as engagement slows down. Per the company’s note to employees:

“The downturn in Fortnite engagement that started in 2025 means we’re spending significantly more than we’re making, and we have to make major cuts to keep the company funded. This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place.”

This is Epic’s second major round of layoffs in three years: it cut more than 800 jobs in 2023 amid widespread industry cost cutting.

In January, Epic hired a new general counsel with extensive experience in helping guide companies through IPOs, igniting rumors that it may be planning its own sometime soon. A move to slash costs sharply like this one could certainly add fuel to that fire.

Struggling with engagement puts “Fortnite,” one of gaming’s biggest “black holes” along with rivals Roblox and Microsoft’s “Minecraft,” in a tough situation — the free-to-play game can’t fall back on box price or a pause in development.

Earlier this month, Epic hiked the price of the in-game currency in “Fortnite,” v-bucks, explaining that “the cost of running Fortnite has gone up a lot.” In recent years, the game has worked to mirror Roblox, expanding its creator offerings and relying more on user-built experiences. Epic has also worked to find more cash in partnerships, deepening its ties with Disney.

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business
Max Knoblauch

United CEO says airfares would have to go up another 20% to “break even” if fuel prices remain elevated

United Airlines CEO Scott Kirby expects oil prices to stay higher for longer and warned that airfares, which have already gone up by double digits in the past few weeks, will need to climb another 20% in order for the airline to “break even” on fuel.

“Airfares are up 15% to 20% in the last few weeks, but that’s sort of covering half to 60% of the inflationary increase, so I think we have some room to go,” Kirby said in an interview with Bloomberg on Tuesday. “If oil prices stayed where they are today, that’s $11 billion of expense for us. And that would require prices to be up 20% to break even.”

Kirby said that he is sure there will be some consumer pushback to increased fares, but added, like several other airline execs recently, that Q1 demand is still strong.

“Demand is the strongest it’s been, ever. The top 10 booking weeks of the year have all been in 2026 so far,” he said.

Jet fuel costs have remained elevated amid the US war with Iran, with prices cracking the $4 mark last week, according to the Argus US Jet Fuel Index. Since US airlines have virtually all given up the practice of fuel hedging, they’re more exposed to volatility.

Last week, United issued a worst-case oil pricing forecast of $175 per barrel, with prices trading above $100 through 2027.

“It’s reasonable for us to plan for that regardless, because the downside is pretty limited,” said Kirby. “Like, [if] we leave a little bit of demand on the table by not flying quite as much this summer, so what.”

business
Max Knoblauch

Nintendo is reportedly cutting back Switch 2 production by 33% as US sales underperform

Nintendo will produce 4 million units of the Switch 2 this quarter, down one-third from its original 6 million-unit target, according to a report by Bloomberg.

The decision, spurred by weaker-than-expected US holiday sales, is not expected to impact estimates of 20 million Switch 2 unit sales for the fiscal year ending this month.

Nintendo ADRs were down 6% in US premarket trading, and shares closed down nearly 5% in Tokyo. With Tuesday morning’s drop, Nintendo ADRs have entirely shed their gains from the unexpected success of “Pokémon Pokopia.”

Weaker holiday sales weren’t just a Nintendo problem: the season saw the worst November in 30 years for overall American gaming console unit sales, per data from Circana. The Switch 2 rebounded in December, but reports that the company would stop producing its popular (and pricier) “Mario Kart World” bundle dampened investors’ moods again toward the end of the year.

Nintendo Cuts Switch 2 Output by Over 30% on Weak US Sales

Nintendo Cuts Switch 2 Output by Over 30% on Weak US Sales

Nintendo ADRs were down 6% in US premarket trading, and shares closed down nearly 5% in Tokyo. With Tuesday morning’s drop, Nintendo ADRs have entirely shed their gains from the unexpected success of “Pokémon Pokopia.”

Weaker holiday sales weren’t just a Nintendo problem: the season saw the worst November in 30 years for overall American gaming console unit sales, per data from Circana. The Switch 2 rebounded in December, but reports that the company would stop producing its popular (and pricier) “Mario Kart World” bundle dampened investors’ moods again toward the end of the year.

business
Tom Jones

Danone acquires meal replacement shake maker Huel for ~$1.2 billion

Very big things are happening today in the world of nutritionally complete products that taste like chalk, as Danone has agreed to buy the celebrity-backed protein bar, powder, meal, and meal replacement shake maker Huel for €1 billion, or around $1.2 billion.

In a statement announcing the acquisition, Danone — apparently the No. 1 yogurt producer in the US and the nation’s top plant-based food and beverage company as well — said that buying Huel will enhance its “presence in functional nutrition and extend its portfolio into the fast-growing Complete Nutrition space.” Danone, the parent company behind Evian and Actimel, also praised Huel’s “best-in-class digital execution” and fan bases across the UK, Europe, and the US.

Bulking season

Huel, a portmanteau of “human” and “fuel,” was only set up just over a decade ago, but thanks to its marketing efforts, a buzzy product range that marries on-the-go eating with nutrient-dense, plant-based ingredients, and a decent list of (mostly UK-based) celebrity investors, like actor Idris Elba and talk show host Jonathan Ross, sales have soared.

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Millie Giles
Slow coach
3/23/26
US airlines are still doubling down on premium seats, as the K-shaped economy takes off

There’s really not much room in economy these days.

United Airlines Boeing 787 Dreamliner Flight
business
Max Knoblauch

China’s EV startup trio have all become profitable

China’s EV startup trio, Nio, Li Auto, and XPeng, are now all profitable, following the latter’s Q4 results released Friday.

XPeng reported a quarterly net profit of about $55 million, compared to rival Nio’s Q4 net profit (also its first) of about $40 million. Li Auto posted Q4 net profit of less than $1 million.

All three companies being profitable offers a stark contrast to the EV market in the US, where Rivian quietly delayed its 2027 profitability target in a filing about its Uber robotaxi partnership yesterday. Lucid is likely further away, and last month cut 12% of its US workforce as part of its “path toward profitability.”

Still, it’s not all rosy for China’s EV startups, either. XPeng ADRs were down more than 6% in Friday morning trading as its Q1 sales forecast came in below estimates. As China rolls back subsidies, auto sales are slumping. Chinese retail EV and hybrid sales fell 32% in February from the same month last year.

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