Fortnite developer Epic Games laid off over 1,000 workers on Wednesday, slicing a big chunk of its workforce. In an open letter despatched to workers, founder and CEO Tim Sweeney cited monetary pressures on the favored multiplayer sport as the rationale for the layoffs.
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“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,” Sweeney wrote in Wednesday’s open letter. “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.”
While Sweeney didn’t share Fortnite‘s precise engagement numbers, statistics trackers Fortnite.GG and ActivePlayer.io report that the sport’s participant depend has considerably slumped in latest months. For over two years Fortnite‘s common each day participant depend surpassed a million each month, reaching a peak of three.1 million in December 2023. This quantity fell to roughly 835,000 final September, dropping its common beneath a million gamers per day for the primary time since June 2023. Player numbers have remained decrease than typical within the months since, now struggling to breach a million.
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In his open letter, Sweeney acknowledged that whereas the whole video games trade is at the moment underneath pressure, Epic Games can also be going through particular challenges concerning Fortnite‘s return to cellular. Both Apple and Google eliminated Fortnite from their app shops in 2020 amidst antitrust disputes concerning in-game funds. In 2024, a brand new EU regulation pressured Apple to reinstate Fortnite on iOS in Europe, with the app additionally finally returning to U.S. iPhones in May 2025. Fortnite simply made its global return to the Google Play store earlier this month, six years after initially being kicked off.
“Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season; we’re only in the early stages of returning to mobile and optimizing Fortnite for the world’s billions of smartphones; and in being the industry’s vanguard we have taken a lot of bullets in a battle which is only in the early days of paying off for ourselves and all developers,” stated Sweeney.
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News of Epic Games’ layoffs arrives simply two weeks after the corporate raised prices for Fortnite‘s in-game currency V-Bucks, stating that the change was “to help pay the bills” after substantial will increase within the prices of operating the sport.
Epic Games beforehand laid off around 830 employees on the finish of 2023, or 16 p.c of its workforce. At the time, Sweeney acknowledged that there can be no extra layoffs following this, and that the cuts would “financially stabilize the business.” Sadly, this not appears to be the case.
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Sweeney particularly famous that Epic Games’ most up-to-date layoffs don’t have anything to do with AI, indicating that it is not utilizing the tech to interchange workers. Developers and gamers alike have expressed concern about synthetic intelligence within the online game trade, with a latest report discovering that one in 5 new video games on Steam use generative AI. In January, writer Ubisoft introduced it’s making “accelerated investments behind player-facing Generative AI” amidst ongoing layoffs, whereas NVIDIA acquired extreme backlash final week for an AI-powered rendering mannequin which gamers labelled an “AI slop filter.”
“Since it’s a thing now, I should note that the layoffs aren’t related to AI,” stated Sweeney. “To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can.”
Still, it is doubtless chilly consolation for all of the builders who’ve been all of the sudden put out of a job this week. Laid off Epic Games workers will obtain at the very least 4 months’ base pay, in addition to prolonged healthcare protection.
The online game trade has been plagued with layoffs in recent times, with huge publishers reminiscent of Ubisoft, Electronic Arts, PlayStation, and Xbox all making vital cuts as nicely. Unfortunately, it appears as if the mass layoffs will not be easing off any time quickly.
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