Epic Games has announced another major round of layoffs, with more than 1,000 employees set to leave the company as part of a wider effort to reduce costs.
The cuts represent roughly 20% of Epic's workforce and come despite the company continuing to operate some of the biggest brands in gaming, including Fortnite, Unreal Engine and the Epic Games Store.
In a memo to employees, Epic CEO Tim Sweeney said the company had been spending more money than it was bringing in and needed to make significant changes to put the business on a sustainable path.
Sweeney pointed to a decline in Fortnite engagement that began in 2025, alongside broader challenges facing the games industry. While Fortnite remains hugely popular, Epic says player activity has not returned to the levels seen during its peak years.
The layoffs are part of a wider plan aimed at saving around $500 million. According to Epic, the company will also reduce spending on contractors, marketing and a number of unfilled positions.
For Unreal Engine developers, the news raises inevitable questions about whether the cuts will affect development of Epic's flagship engine. The company has attempted to reassure both developers and investors, stating that Unreal Engine remains a key strategic focus and that work on future technologies will continue.
The announcement comes during a difficult period for the wider games industry. Over the past few years, thousands of jobs have been lost across major publishers and independent studios alike as companies adjust to slower growth following the post-pandemic boom.
While layoffs have unfortunately become a regular headline across gaming, Epic's size and influence make this one particularly significant. The company sits at the centre of some of the industry's most important technologies and services, meaning any major change inevitably attracts attention far beyond Fortnite itself.
For now, Epic's message is clear: the company believes these cuts are necessary to stabilise the business and continue investing in its long-term future. Whether that strategy pays off remains to be seen.
The cuts represent roughly 20% of Epic's workforce and come despite the company continuing to operate some of the biggest brands in gaming, including Fortnite, Unreal Engine and the Epic Games Store.
In a memo to employees, Epic CEO Tim Sweeney said the company had been spending more money than it was bringing in and needed to make significant changes to put the business on a sustainable path.
Sweeney pointed to a decline in Fortnite engagement that began in 2025, alongside broader challenges facing the games industry. While Fortnite remains hugely popular, Epic says player activity has not returned to the levels seen during its peak years.
The layoffs are part of a wider plan aimed at saving around $500 million. According to Epic, the company will also reduce spending on contractors, marketing and a number of unfilled positions.
For Unreal Engine developers, the news raises inevitable questions about whether the cuts will affect development of Epic's flagship engine. The company has attempted to reassure both developers and investors, stating that Unreal Engine remains a key strategic focus and that work on future technologies will continue.
The announcement comes during a difficult period for the wider games industry. Over the past few years, thousands of jobs have been lost across major publishers and independent studios alike as companies adjust to slower growth following the post-pandemic boom.
While layoffs have unfortunately become a regular headline across gaming, Epic's size and influence make this one particularly significant. The company sits at the centre of some of the industry's most important technologies and services, meaning any major change inevitably attracts attention far beyond Fortnite itself.
For now, Epic's message is clear: the company believes these cuts are necessary to stabilise the business and continue investing in its long-term future. Whether that strategy pays off remains to be seen.