The move was revealed in a company-wide memo on March 24, 2026.
In the message posted to Epic's website, CEO Tim Sweeney wrote: "Today we're laying off over 1000 Epic employees. I'm sorry we're here again." He cited a sharp downturn in Fortnite player engagement that began in 2025 as the main driver. The drop has caused the company to spend significantly more money than it brings in, forcing major cost reductions to keep operations funded.
This layoff, together with over 500 million dollars of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place.
Sweeney explained that the layoffs, combined with more than 500 million dollars in planned savings from reduced contracting, marketing expenses, and unfilled roles, should place the company on firmer financial ground. The job cuts amount to roughly 20 percent of Epic's total workforce. Following the reductions, the company expects to employ about 4,000 people.
Employees affected by the layoffs will receive severance that includes at least four months of base pay. Additional amounts will be provided based on length of service.
This is the second large-scale workforce reduction at Epic in recent years. In 2023 the company eliminated around 830 positions, or about 16 percent of its staff at the time, also pointing to lower Fortnite profit margins.
Epic Games, headquartered in Cary, North Carolina, is best known for Fortnite and its Unreal Engine technology used across the gaming industry. The latest announcement reflects ongoing challenges in the video game sector as player habits shift after the pandemic boom and economic conditions tighten.
While the cuts aim to restore stability, industry observers note that Epic's future performance will hinge on its ability to revive interest in Fortnite through fresh updates, events, and features.