Fortnite Studio Epic Games Lays Off 1,000 Workers Amid Downturn

Epic Games, the studio behind Fortnite, is slashing greater than 1,000 jobs because it offers with a “downturn” in engagement with its flagship sport.

Epic CEO Tim Sweeney introduced the cuts to workers Tuesday.

“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 wrote. “Some of the challenges we’re facing are industry-wide challenges: slower growth, weaker spending, and tougher cost economics; current consoles selling less than last generation’s; and games competing for time against other increasingly-engaging forms of entertainment.”

Epic, in fact, is an in depth accomplice of The Walt Disney Co., which invested $1.5 billion within the firm two years in the past, with plans to create a Fortnite-connected universe crammed with Disney IP and characters. Disney characters have additionally made frequent appearances in restricted version Fortnite seasons.

Sweeney can be near new Disney CEO Josh D’Amaro, who championed the Epic Games deal. Sources near D’Amaro stated that interactivity might be a centerpiece of his technique for the corporate.

Sweeney advised The Hollywood Reporter after D’Amaro obtained the job that the exec understood how gaming and leisure can work collectively harmoniously.

“Josh and Disney really get it and have a crisp understanding of how the future of their film and TV IP, Disney+ and games fit together into a digital ecosystem and tie into parks and other things,” he says.

In his memo, Sweeney in contrast the present second to the Nineties, when technological disruption equally modified the course of the gaming business. Epic was a participant then due to its Unreal Engine.

“Market conditions today are the most extreme we’ve seen since those early days, with massive upheaval in the industry accompanied by massive opportunity for the companies that come out as winners on the other side,” Sweeney wrote.

He additionally took ache to notice that “since it’s a thing now, I should note that the layoffs aren’t related to AI. To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can.”