Epic Games has laid off over 1,000 employees!

In a recent announcement, Epic Games stated that it is in the process of laying off more than 1,000 employees.

Given the large number of people affected, this could be considered one of the biggest layoffs in the gaming industry in recent years.

In an article posted on its official website, Tim Sweeney – the company's CEO – shared the following about this decision:

"Today, we are cutting over 1,000 jobs at Epic. I am saddened that we have to continue facing this situation." 

The decline in Fortnite engagement – ​​which began in 2025 – has resulted in our expenses now far exceeding our revenue; therefore, we are forced to implement large-scale cost-cutting measures to ensure the company's continued operation. 

This round of job cuts, along with over $500 million in cost savings identified through contract adjustments, marketing activities, and closing several vacant positions, will help put our company in a more stable and secure position.

Epic Games has laid off over 1000 employees https://t.co/NTCdxm7mZt pic.twitter.com/CZvvYICAf7

— Wario64 (@Wario64) March 24, 2026

Specifically, Sweeney stated that some of the challenges the company is facing are "common industry challenges." However, there are also some challenges unique to Fortnite.

"Although Fortnite remains one of the world's most successful games, we still face challenges in consistently delivering the 'magic' of Fortnite season after season."

Furthermore, he emphasized that Epic Games' decision to lay off employees was not related to replacing human staff with AI. Sweeney also shared some insights into the challenging periods the company has faced over the past 30 years.

However, he said the challenges this time are entirely different.

'The current market conditions are the most challenging we've seen since our inception, with massive industry volatility, but also enormous opportunities for companies to emerge victorious as this period draws to a close.'

That's exactly what we're trying to bring to our gaming community.

At the same time, we also hope to collaborate with other like-minded developers in the industry to jointly create a more open and vibrant future for the entertainment industry.

As for the affected employees, they will receive at least four months' salary and more support based on their length of service with the company. 

Epic Games also announced that employees in the United States will receive health insurance coverage for six months and will have their stock options exercised expedited until January 2027.

This isn't the first time Epic Games has carried out layoffs on this scale, as the company previously parted ways with 830 employees.