Fortnite maker Epic is laying off over 1,000 workers
3 minute readPublished: Tuesday, March 24, 2026 at 2:54 pm
Epic Games Announces Over 1,000 Layoffs Amidst Industry Challenges
Epic Games, the developer behind the popular game Fortnite, has announced plans to lay off over 1,000 employees. This marks the second significant round of job cuts in the past year, following a reduction of more than 800 roles in 2023.
CEO Tim Sweeney attributed the layoffs to a decline in engagement for Fortnite, along with broader challenges facing the live-service games industry. These challenges include increased competition and reduced consumer spending. Sweeney acknowledged that some of Epic's issues are specific to Fortnite, citing difficulties in delivering consistent "Fortnite magic" with each season. He also mentioned the early stages of returning to mobile and optimizing the game for smartphones.
The company is also implementing cost-saving measures, including reductions in contracting and marketing expenses, and closing some open roles. Impacted employees will receive a severance package that includes four months of pay and, for US-based workers, six months of paid healthcare.
Earlier this month, Epic Games increased the price of V-bucks, Fortnite's in-game currency, citing rising operational costs. Additionally, the company will be winding down three Fortnite game modes: Rocket Racing, Ballistic, and the Fortnite Festival battle stage. The main Fortnite Festival, a rhythm game, will remain online.
These cuts come amid a period of turbulence in the live-service gaming sector. Other companies have also announced layoffs or shut down projects, including Highguard, EA, Riot, and Remedy. Sweeney noted that market conditions are "the most extreme" seen in the industry's history, but expressed optimism about the future, aiming to build an "open and vibrant future of entertainment."
BNN's Perspective: The gaming industry is known for its volatility, and these layoffs at Epic Games are a stark reminder of the challenges companies face in maintaining player engagement and adapting to changing market conditions. While the company is taking steps to streamline its operations, the long-term impact on Fortnite and the broader gaming landscape remains to be seen. It's a tough time for employees, but hopefully, the company can find a way to stabilize and continue to innovate.
Keywords: Epic Games, Fortnite, layoffs, Tim Sweeney, live-service games, gaming industry, cost-cutting, V-bucks, Rocket Racing, Ballistic, Fortnite Festival, Highguard, EA, Riot, Remedy.