Epic Games has cut more than 1000 jobs, and CEO Tim Sweeney is pointing directly at ‘Fortnite‘ as the reason why. According to Sweeney, the game’s engagement has been falling since 2025, and the company has been burning through more cash than it brings in, which forced the decision.
This is the second time in recent memory that Epic has had to do mass layoffs. But what makes this one stand out is how blunt Sweeney was about ‘Fortnite‘ being the root of the problem. The game still pulls massive numbers globally, but clearly that has not been enough to keep Epic’s finances in check, especially after the company recently hiked V-Bucks prices to try and offset costs.
Sweeney Told Staff That Epic Is Spending More Than It Is Making
Sweeney sent a company-wide message confirming the cuts and said he was sorry that Epic was “here again.” He explained that the ‘Fortnite‘ downturn, combined with heavy spending on long-term projects like Unreal Engine and the push to bring ‘Fortnite‘ back to mobile, had put the company in a bad spot financially.
On top of the layoffs, Epic has also identified more than $500 million worth of savings by cutting back on outside contracts and marketing budgets and leaving certain open positions unfilled.
He did not just blame Epic either. Sweeney said the gaming industry overall has slowed down with weaker spending from consumers and console hardware moving fewer units than the last generation did. But he also admitted that Epic has struggled internally when it comes to ‘Fortnite‘ and said the team has not been able to deliver the kind of standout content every season that used to keep players coming back.
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Sweeney made it clear that AI had nothing to do with the layoffs and that Epic still wants to hire as many developers as it can going forward. It all comes down to money going out faster than it comes in.
Sweeney Says The Company Has Big Plans For Later This Year
Sweeney tried to end on a positive note and said Epic has major launch plans coming towards the end of 2026. The plan from here is to focus on making Fortnite seasons stronger with better gameplay updates and live events while also finishing work on whatever comes next for Unreal Engine.
Everyone who was laid off will be getting a severance package that covers multiple months of pay and extended benefits. US employees specifically will keep their healthcare for six months and have a longer window to deal with their stock options. The exact terms vary, but Epic has confirmed that stock vesting will be accelerated through early 2027 for those affected.
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But the timing of all this is hard to ignore. Epic just raised the price of V-Bucks not long ago and told players it was to help pay the bills. Now over 1000 people are out of a job and Sweeney is publicly saying Fortnite is not making enough money. For a game that is still among the most played in the world that is a tough look for Epic right now.
