In September 2023, Epic Games laid off at least 830 employees – about 16% of their staff – in order to recover from an extended period of spending way more money than they earned. Well, here we are again. This time, Tim attributes the overspending to industry-wide economic challenges and a "downturn in Fortnite engagement that started in 2025".
Tim Sweeney:
Today we’re laying off over 1000 Epic employees. I'm sorry we're here again. 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.