Epic Games has decided to lay off more than 1,000 employees.

Amidst a wave of layoffs sweeping the gaming industry, even a giant like Epic Games couldn't withstand the pressure.

Despite owning the massive "money-making machine" that is Fortnite, the company has just officially decided to lay off 1,000 employees to cope with financial difficulties and a decline in player numbers.

In today's gaming industry, no company is entirely immune to the risk of layoffs. From giants like Xbox and Ubisoft to smaller developers like Wildlight Entertainment, job cuts have become the most common cost-saving measure. However, the fact that the publisher of a hugely profitable game like Fortnite is struggling to downsize is an alarming sign for the entire industry.

According to an internal memo from CEO Tim Sweeney, Epic Games officially laid off 1,000 employees today. The main reason given is the decline in Fortnite community engagement, which began in the early months of 2025.

According to the announcement, the amount of money the company is spending to maintain the game's appeal has far exceeded the revenue generated. Therefore, Epic has been forced to make the decision to cut over $500 million from marketing, contracts, and open job positions in order to maintain operating capital.

In addition to the general challenges facing the entire industry, Epic also has to contend with specific challenges surrounding the Fortnite brand itself. Although it is one of the most successful games in the world, the publisher admits they are struggling to maintain consistent quality across seasons.

In the open letter, Epic Games specifically reassured the community that this round of layoffs was completely unrelated to AI interference, and affirmed that the company always aims to hire as many human employees as possible.

However, in order to continue delivering fresh content to Fortnite and prepare for the move to Unreal Engine 6, this painful restructuring was necessary. Affected employees will receive a severance package including four months' salary and several other additional benefits.