Epic Video games is shedding 1,000 staff on Tuesday, in accordance with an organization memo that was posted on Epic’s blog.
“The downturn in Fortnite engagement that began in 2025 means we’re spending considerably greater than we’re making, and we’ve to make main cuts to maintain the corporate funded,” Epic Video games CEO Tim Sweeney wrote within the memo. “This layoff, along with over $500 million of recognized price financial savings in contracting, advertising and marketing, and shutting some open roles places us in a extra secure place.”
Final week, Epic additionally increased the price of V-Bucks, the Fortnite in-game foreign money, saying that “the price of working Fortnite has gone up quite a bit.”
Sweeney stated that the layoffs weren’t attributable to AI making builders’ jobs redundant. Not directly, although, the corporate could also be going through AI-related headwinds, for the reason that RAM scarcity and demand for chips have had ripple results throughout the trade, and have additionally impacted client spending.
Laid-off staff will get 4 months of severance pay, with extra for individuals with longer tenures. Epic will proceed paying for the healthcare of U.S. staff for six months after the layoff.
