CEO Tim Sweeney says cuts are necessary to "keep the company funded" and to put it "in a more stable place"

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Epic Games is laying off more than 1,000 employees due to a downturn in Fortnite engagement that caused the company to spend significantly more than it earns. CEO Tim Sweeney stated the cuts, combined with over $500 million in identified cost savings, are necessary to keep the company funded and reach financial stability. Sweeney clarified the layoffs are not AI-related and cited broader industry challenges including slower growth, weaker consumer spending, higher costs, and declining console sales. Affected US employees will receive at least four months of base pay severance, six months of paid healthcare, and accelerated stock options. This follows a previous round of 800+ layoffs in September 2023 and a recent increase in Fortnite's in-game currency prices.

Epic Games lays off over 1,000 employees following "downturn in Fortnite engagement"