Epic Games announced layoffs affecting more than 1,000 employees on March 24, citing a downturn in Fortnite engagement that has led to spending exceeding revenue. CEO Tim Sweeney expressed regret in a blog post, noting the cuts along with over $500 million in other cost savings will stabilize the company. Affected staff will receive severance packages including at least four months of base pay and extended healthcare.
Epic Games, maker of Fortnite and Unreal Engine, laid off over 1,000 employees on March 24. In a blog post and message to staff, CEO Tim Sweeney wrote, “Today we're laying off over 1000 Epic employees. I'm sorry we're here again. 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.” Sweeney attributed some issues to industry-wide challenges like slower growth and competition from other entertainment, as well as Epic-specific hurdles including inconsistent seasonal content and early-stage mobile return. He emphasized Epic's role as the “industry’s vanguard” in legal battles against app store practices, stating they have “taken a lot of bullets in a battle which is only in the early days of paying off.” Sweeney clarified the layoffs are not related to AI, adding, “To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can.” Laid-off employees will receive at least four months of base pay, with more for longer tenure, six months of US healthcare coverage, accelerated stock vesting through January 2027, and extended equity exercise options. This follows 830 layoffs in 2023 and a recent V-Bucks price increase to help pay bills. Among those affected was Evan Kinney, Fortnite's principal engineer since 2017, who posted on X about his contributions and recent work on the Rivalry system. Other former staff, including Devon Adesso, George Sokol, and Stephen Thompson, shared they are job hunting. Unaffected employees expressed heartbreak over talented colleagues' departures.
