Epic Games is cutting more than 1,000 jobs, which is about 16% of its global workforce. CEO Tim Sweeney pointed out that the company is “spending significantly more than we’re making,” mainly due to a drop in Fortnite revenue.
Sweeney announced the layoffs in a public statement on Epic’s website. He described the decision as painful and took full responsibility. “I’m sorry we’re here again,” he said, referring to a previous layoff round in 2023 that eliminated around 870 positions. These consecutive cuts indicate that Epic’s cost structure has not improved, even after those earlier job losses.
In addition to reducing headcount, Epic is looking to save over $500 million across the business. They haven’t detailed which departments will feel the impact the most, but the layoffs will affect multiple divisions. Epic also owns the Unreal Engine, which supports a large part of the gaming industry, meaning the layoffs will have effects beyond just Fortnite.
Fortnite is still one of the world’s most-played games, but its revenue growth has definitely slowed since its peak years. The battle royale game launched in 2017 and brought in an estimated $9 billion in its first two years. It’s tough to maintain that spending level, especially with costly licensing deals involving brands like Marvel, Star Wars, and major music artists, when player spending starts to level off or decline. Video Games Chronicle reports that Sweeney specifically mentioned a “Fortnite downturn” as a major factor.
This marks the second large wave of layoffs at Epic in less than two years. The 2023 layoffs included the sale of Bandcamp, which Epic had bought in 2022, along with cuts to its music and publishing divisions. This pattern suggests long-term overspending during Fortnite’s peak, rather than just a single market shock. Rock Paper Shotgun highlights Sweeney’s repeated apologies, emphasizing how challenging it’s been for the company to adjust after years of expansion fueled by Fortnite’s success.
| Employees laid off (2024) | 1,000+ |
| Employees laid off (2023) | ~870 |
| Planned cost savings | $500M+ |
| Fortnite peak revenue (first 2 years) | ~$9 billion |
| Fortnite launch year | 2017 |
Community response has been quick and mostly sympathetic towards those affected. Many have expressed frustration with executive decisions. One commenter on Push Square’s coverage noted that two rounds of mass layoffs in two years point to “a leadership problem, not a Fortnite problem,” a view shared widely on social media. Former Epic employees have started sharing their experiences on LinkedIn, with several mentioning they received little notice before the layoffs.
What To Watch
- Unreal Engine’s roadmap: With significant cuts across the company, keep an eye out for any slowdown in Unreal Engine 5 feature development or support. This could concern the many studios that rely on it.
- Fortnite’s revenue strategy: Epic will likely ramp up monetization experiments within Fortnite to stabilize income. Expect new licensing deals, battle pass changes, or platform expansions soon.
- Further asset sales: Similar to the sale of Bandcamp in 2023, Epic might consider selling off non-core assets to help meet the $500 million in savings. Any news regarding the Epic Games Store or its subsidiary studios will be worth watching.
