Epic Games cutting 1,000 jobs amid ‘downturn’ in ‘Fortnite’ engagement

March 24, 2026 - 20:48

In a significant restructuring move, Epic Games is eliminating approximately 1,000 jobs, representing roughly 16% of its workforce. The decision was communicated to staff in a company-wide memo from CEO Tim Sweeney, who pointed to a concerning "downturn" in engagement with the company's flagship title, Fortnite, as a primary driver.

Sweeney stated the company has been spending far more money than it earns for some time, a situation he deemed unsustainable. The layoffs are part of a broader financial stabilization effort. While Fortnite is expected to grow again, Sweeney noted this growth is now fueled by creator content with significant revenue sharing, representing a major shift from its earlier, more profitable direct revenue model.

The cuts aim to stabilize the company's finances without sacrificing its core development initiatives or the Fortnite ecosystem. Affected employees will receive severance packages, including six months of base pay and continued health benefits. Epic also confirmed a divestiture of recently acquired music platform Bandcamp and is spinning off most of its marketing agency, SuperAwesome. This restructuring marks a pivotal moment for the gaming giant as it adapts to a rapidly evolving digital marketplace.