“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.